Economy

WASHINGTON: US manufacturing activity slowed more than expected in April amid a sharp drop in orders and construction spending fell in March, suggesting a moderation in economic growth.While other data on Wednesday (May 1) showed private employers hired the most workers in nine month in April, the surge in job growth was likely driven by technical factors. The mixed reports came as Federal Reserve officials were wrapping up a two-day meeting.The Fed in March suspended a three-year policy tightening campaign. With the economy appearing to slow and inflation muted, the US central bank is expected to reaffirm its decision to halt further interest rate increases this year. The Fed raised borrowing costs four times in 2018.The Institute for Supply Management said its index of national factory activity fell to a reading of 52.8 in April from 55.3 in March. A reading above 50 indicates growth in the manufacturing sector, which accounts for about 12 per cent of the … [Read more...] about US economy appearing to slow; labour market strong

Mexican President Andres Manuel Lopez Obrador got 2 troubling pieces of news Tuesday as the economy registered a surprise contraction in his first quarter in office and state oil company Pemex posted a steep loss. The anti-establishment leftist won a landslide victory in Mexico's 2018 elections, and is promising to deliver "radical transformation" -- plus economic growth of four percent per year during his six-year term. But his policies have unsettled the business world, and although polls indicate he remains popular, the health of Latin America's second-largest economy has emerged as a potential Achilles' heel. Mexico registered a surprise 0.2-percent drop in GDP in the quarter from January to March, according to preliminary data. It was the first full quarter under Lopez Obrador, who took office on December 1, and who got off to a rocky start on the economic front. His year began with a series of strikes that affected railroads and factories, plus gasoline shortages caused by his … [Read more...] about News Mexican economy shrinks in new president’s first quarter

MANILA - S&P Global said Tuesday it raised its long-term sovereign credit rating for the Philippines, citing above-average economic growth, a healthy external position and sustainable public finances.  The Philippines' score was raised to BBB+ from BBB A, the third lowest investment grade rating or 3 notches above the minimum investment grade score, S&P said.  A high credit rating gives a borrower access to a wider pool of funds.  “We raised the rating to reflect the Philippines' strong economic growth trajectory, which we expect to continue to drive constructive development outcomes and underpin broader credit metrics over the medium term," S&P said.  "The rating is also supported by solid government fiscal accounts, low public indebtedness, and the economy's sound external settings,” it said.  S&P cited the country’s declining unemployment rate and its economy, which is considered as among the “fastest growing” in … [Read more...] about News S&P raises Philippines’ credit rating, citing strong economy