US industrial production slowed in February 2015
The US industrial production slowed its growth, as well as orders and recruitment. The Institute for Supply Management (ISM), which publishes the monthly index of supply managers (PMI), reported that indicator dropped to 52.9 points in February compared to 53.5 points in January. This is the fourth consecutive decline and the lowest level of the […]
The US industrial production slowed its growth, as well as orders and recruitment. The Institute for Supply Management (ISM), which publishes the monthly index of supply managers (PMI), reported that indicator dropped to 52.9 points in February compared to 53.5 points in January. This is the fourth consecutive decline and the lowest level of the index of January 2014, however, levels above 50 means growth. The indicators of output and employment fell sharply, but remained in the territory of the development. This suggests that companies are still hiring, but at a slower pace than in January.
The US producers have suffered in recent months by slower growth in China, Europe and Japan. However, this was partly offset by strong consumer demand in USA. In January, consumer spending has dropped for the second consecutive month. Expected weak demand for users to be temporary, as income increased, reflecting the steady creation of new jobs in the month. Commerce Department reported that consumer spending fell by 0.2% in January after falling 0.3% in December.
The income increased by 0.3% in January, wages grew by 42.4 billion USD. The analysts expect the continued creation of new jobs and lower unemployment to strengthen consumer spending and stimulate economic growth this year. According to them, this will be the fastest growth rate in ten years.
