Economy - The Salt Lake Tribune http://www.sltrib.com/cat/Economy Stories from The Salt Lake Tribune &copy; 2014 The Associated Press, The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our privacy policy: http://www.sltrib.com/pages/privacy. en-us webmaster@sltrib.com (Webmaster) Speculation swirls over Fed language on rate hike http://www.sltrib.com/sltrib/money/58416328-79/fed-rates-considerable-rate.html.csp Washington • When the Federal Reserve issues a policy statement after it meets this week, the financial world will be on high alert for two words: “Considerable time.” The presence or absence of that phrase will trigger a rush to assess the likely timing of the Fed’s first increase in interest rates since it cut them to record lows in 2008. The Fed’s recent statements have said it expects to keep its key short-term rate near zero for a “considerable time” after it stops buying Treasurys and mort... Washington • When the Federal Reserve issues a policy statement after it meets this week, the financial world will be on high alert for two words: “Considerable time.” The presence or absence of that phrase will trigger a rush to assess the likely timing of the Fed’s first increase in interest rates since it cut them to record lows in 2008. The Fed’s recent statements have said it expects to keep its key short-term rate near zero for a “considerable time” after it stops buying Treasurys and mort... <img src="http://mngislctrib.112.2O7.net/b/ss/mngislctrib/1/H.17--NS/0?&pageName=RSS" height="1" width="1" border="0" alt=""/> 58416328@www.sltrib.com Mon, 15 Sep 2014 14:23:02 MDT Think tank cuts Eurozone economic growth forecast http://www.sltrib.com/sltrib/money/58415739-79/percent-eurozone-growth-cut.html.csp Frankfurt, Germany • A major international organization has cut its growth forecast for the countries that use the euro and says the troubled currency union needs even more stimulus from the central bank and governments. The Organization for Economic Cooperation and Development, a think tank dealing with the world’s developed countries, cut its forecasts for the eurozone this year to 0.8 percent from 1.2 percent in its May assessment. The Paris-based OECD also cut its growth forecasts for the U.... Frankfurt, Germany • A major international organization has cut its growth forecast for the countries that use the euro and says the troubled currency union needs even more stimulus from the central bank and governments. The Organization for Economic Cooperation and Development, a think tank dealing with the world’s developed countries, cut its forecasts for the eurozone this year to 0.8 percent from 1.2 percent in its May assessment. The Paris-based OECD also cut its growth forecasts for the U.... 58415739@www.sltrib.com Mon, 15 Sep 2014 09:27:02 MDT U.S. factory output drops 0.4 percent in August http://www.sltrib.com/sltrib/money/58415559-79/percent-manufacturing-output-august.html.csp Washington • U.S. manufacturing output declined in August for the first time in seven months, reflecting a sharp fall in production at auto plants that was due mainly to seasonal adjustment problems. Output at manufacturing plants fell 0.4 percent in August after a 0.7 percent rise in July, the Federal Reserve reported Monday. Total industrial production was down 0.1 percent in August, also the first setback for the overall figure since January. Output was up in mining and utility production but... Washington • U.S. manufacturing output declined in August for the first time in seven months, reflecting a sharp fall in production at auto plants that was due mainly to seasonal adjustment problems. Output at manufacturing plants fell 0.4 percent in August after a 0.7 percent rise in July, the Federal Reserve reported Monday. Total industrial production was down 0.1 percent in August, also the first setback for the overall figure since January. Output was up in mining and utility production but... 58415559@www.sltrib.com Mon, 15 Sep 2014 08:35:02 MDT Fed creates financial stability monitoring panel http://www.sltrib.com/sltrib/money/58407265-79/fed-financial-monitoring-panel.html.csp Washington • The Federal Reserve has created a new committee headed by the central bank’s No. 2 official tasked with monitoring potential threats to the nation’s financial system. The new Committee on Financial Stability will be headed by Fed Vice Chairman Stanley Fischer. Fed board of governors members Daniel Tarullo and Lael Brainard were also named to the committee. Fed Chair Janet Yellen decided to create the new panel and picked the officials who will serve on it. It is one of seven committ... Washington • The Federal Reserve has created a new committee headed by the central bank’s No. 2 official tasked with monitoring potential threats to the nation’s financial system. The new Committee on Financial Stability will be headed by Fed Vice Chairman Stanley Fischer. Fed board of governors members Daniel Tarullo and Lael Brainard were also named to the committee. Fed Chair Janet Yellen decided to create the new panel and picked the officials who will serve on it. It is one of seven committ... 58407265@www.sltrib.com Fri, 12 Sep 2014 14:09:02 MDT European states struggle with Draghi’s challenge http://www.sltrib.com/sltrib/money/58402673-79/draghi-growth-spending-bank.html.csp Frankfurt, Germany • European Central Bank head Mario Draghi made the first move in his grand plan to rescue the economic recovery. Now it’s over to the governments of the 18 countries that use the euro. Eurozone finance ministers gather Friday and Saturday for the first time since the ECB president sketched out what has been dubbed “Draghinomics:” a three-pillared strategy including more stimulus from the central bank, added government spending and pro-business reforms to cut bureaucracy and ma... Frankfurt, Germany • European Central Bank head Mario Draghi made the first move in his grand plan to rescue the economic recovery. Now it’s over to the governments of the 18 countries that use the euro. Eurozone finance ministers gather Friday and Saturday for the first time since the ECB president sketched out what has been dubbed “Draghinomics:” a three-pillared strategy including more stimulus from the central bank, added government spending and pro-business reforms to cut bureaucracy and ma... 58402673@www.sltrib.com Thu, 11 Sep 2014 11:57:02 MDT Auto sales in China decline markedly in August http://www.sltrib.com/sltrib/money/58402013-79/percent-sales-vehicles-auto.html.csp Beijing • China’s auto sales growth decelerated further in August to 8.5 percent while sales of SUVs surged by nearly a third. Drivers in the world’s biggest auto market by vehicle sales bought 1.5 million passenger cars in August, the China Association of Automobile Manufacturers said Thursday. Total sales, including trucks and buses, rose 4 percent to 1.7 million vehicles. Global automakers are looking to China to drive global sales but growth has slowed steadily as the world’s No. 2 economy c... Beijing • China’s auto sales growth decelerated further in August to 8.5 percent while sales of SUVs surged by nearly a third. Drivers in the world’s biggest auto market by vehicle sales bought 1.5 million passenger cars in August, the China Association of Automobile Manufacturers said Thursday. Total sales, including trucks and buses, rose 4 percent to 1.7 million vehicles. Global automakers are looking to China to drive global sales but growth has slowed steadily as the world’s No. 2 economy c... 58402013@www.sltrib.com Thu, 11 Sep 2014 08:49:02 MDT Stalled France to miss deficit target until 2017 http://www.sltrib.com/sltrib/money/58398250-79/france-target-deficit-percent.html.csp Paris • France has revised down its growth forecasts and says it will miss its deficit target for another three years, confirmation that Europe’s second-largest economy will emerge only slowly from its stagnation. Finance Minister Michel Sapin said Wednesday the budget deficit would be around 4.3 percent of GDP in 2015 and would not dip under the 3 percent target for European Union countries until 2017, a decade after the last time France hit the target He revised down the country’s growth figur... Paris • France has revised down its growth forecasts and says it will miss its deficit target for another three years, confirmation that Europe’s second-largest economy will emerge only slowly from its stagnation. Finance Minister Michel Sapin said Wednesday the budget deficit would be around 4.3 percent of GDP in 2015 and would not dip under the 3 percent target for European Union countries until 2017, a decade after the last time France hit the target He revised down the country’s growth figur... 58398250@www.sltrib.com Wed, 10 Sep 2014 11:49:02 MDT U.S. wholesale stockpiles up 0.1 percent in July http://www.sltrib.com/sltrib/money/58398210-79/percent-july-stockpiles-growth.html.csp Washington • Stockpiles held by U.S. wholesale businesses edged up in July by the smallest amount in a year while sales rose at a healthy clip. Wholesalers increased their inventories by a slight 0.1 percent in July after a stronger 0.4 percent increase in June, the Commerce Department reported Wednesday. It was the smallest gain since a 0.1 percent increase in stockpiles in July 2013. Sales rose a solid 0.7 percent in July, up from 0.4 percent in June. The latest increase matched the May gain. ... Washington • Stockpiles held by U.S. wholesale businesses edged up in July by the smallest amount in a year while sales rose at a healthy clip. Wholesalers increased their inventories by a slight 0.1 percent in July after a stronger 0.4 percent increase in June, the Commerce Department reported Wednesday. It was the smallest gain since a 0.1 percent increase in stockpiles in July 2013. Sales rose a solid 0.7 percent in July, up from 0.4 percent in June. The latest increase matched the May gain. ... 58398210@www.sltrib.com Wed, 10 Sep 2014 11:34:01 MDT EU says Cyprus’ new laws clash with rescue deal http://www.sltrib.com/sltrib/money/58397649-79/cyprus-rescue-deal-law.html.csp Nicosia, Cyprus • The European Union is warning Cyprus that it may be flouting the terms of its multibillion-euro rescue package after the country’s parliament approved legislation softening a crucial foreclosures law. Though legislators have approved a law that significantly cuts the time banks need to seize and sell off property in order to tackle a huge number of bad loans, they backed several other measures that give additional cover to borrowers, including writing off the outstanding amount... Nicosia, Cyprus • The European Union is warning Cyprus that it may be flouting the terms of its multibillion-euro rescue package after the country’s parliament approved legislation softening a crucial foreclosures law. Though legislators have approved a law that significantly cuts the time banks need to seize and sell off property in order to tackle a huge number of bad loans, they backed several other measures that give additional cover to borrowers, including writing off the outstanding amount... 58397649@www.sltrib.com Wed, 10 Sep 2014 09:01:01 MDT U.S. recovery drives the dollar sharply higher http://www.sltrib.com/sltrib/money/58393249-79/dollar-percent-economy-says.html.csp New York • In the world of currencies, the dollar is starting to look like a safe home in a tough neighborhood. A strengthening U.S. economy, combined with a gloomy outlook for growth elsewhere in the world, is pushing the U.S. currency sharply higher. The dollar is up 6.4 percent against a group of major currencies since the start of May and has risen in three of the past four months. The U.S. currency climbed to its highest level in six years against the Japanese yen Tuesday, and it’s trading ... New York • In the world of currencies, the dollar is starting to look like a safe home in a tough neighborhood. A strengthening U.S. economy, combined with a gloomy outlook for growth elsewhere in the world, is pushing the U.S. currency sharply higher. The dollar is up 6.4 percent against a group of major currencies since the start of May and has risen in three of the past four months. The U.S. currency climbed to its highest level in six years against the Japanese yen Tuesday, and it’s trading ... 58393249@www.sltrib.com Tue, 09 Sep 2014 10:00:02 MDT Japanese economy contracted 7.1 percent in quarter http://www.sltrib.com/sltrib/money/58388618-79/percent-economy-spending-tax.html.csp Tokyo • Japan’s economy contracted at a larger than earlier estimated annual rate of 7.1 percent in April-June, the government said Monday. Revised data showed business investment fell more than twice as much as estimated before, or 5.1 percent, while private residential spending sank 10.4 percent. The earlier estimate showed the economy contracting 6.8 percent. The recovery of the world’s third-largest economy has slowed following an increase in the sales tax to 8 percent from 5 percent on Apri... Tokyo • Japan’s economy contracted at a larger than earlier estimated annual rate of 7.1 percent in April-June, the government said Monday. Revised data showed business investment fell more than twice as much as estimated before, or 5.1 percent, while private residential spending sank 10.4 percent. The earlier estimate showed the economy contracting 6.8 percent. The recovery of the world’s third-largest economy has slowed following an increase in the sales tax to 8 percent from 5 percent on Apri... 58388618@www.sltrib.com Mon, 08 Sep 2014 09:42:02 MDT China exports up 9.4 percent, imports shrink again http://www.sltrib.com/sltrib/money/58388607-79/china-imports-percent-exports.html.csp Hong Kong • China’s exports grew more than forecast in August while imports shrank unexpectedly for the second month in a row, a reminder of the fragile recovery in the world’s No. 2 economy, customs data showed Monday. Exports rose 9.4 percent last month, down from a 14.5 percent expansion in July but higher than many economists had been forecasting. Imports, however, contracted 2.4 percent, after shrinking 1.6 percent the month before, at odds with the expectations of economists, who thought i... Hong Kong • China’s exports grew more than forecast in August while imports shrank unexpectedly for the second month in a row, a reminder of the fragile recovery in the world’s No. 2 economy, customs data showed Monday. Exports rose 9.4 percent last month, down from a 14.5 percent expansion in July but higher than many economists had been forecasting. Imports, however, contracted 2.4 percent, after shrinking 1.6 percent the month before, at odds with the expectations of economists, who thought i... 58388607@www.sltrib.com Mon, 08 Sep 2014 09:33:02 MDT Pound sinks as Scottish independence race tightens http://www.sltrib.com/sltrib/money/58388529-79/independence-scotland-yes-vote.html.csp London • Britain’s main political leaders scrambled Monday to offer Scotland greater autonomy in a last-minute bid to stave off independence, as the pound sank on opinion polls suggesting separatists are gaining ground — and may even be in the lead. A Yes vote in next week’s referendum would end Scotland’s 307-year-old union with England and plunge Britain into uncharted constitutional and economic waters. Many British politicians and business leaders have long considered that outcome unlikely, ... London • Britain’s main political leaders scrambled Monday to offer Scotland greater autonomy in a last-minute bid to stave off independence, as the pound sank on opinion polls suggesting separatists are gaining ground — and may even be in the lead. A Yes vote in next week’s referendum would end Scotland’s 307-year-old union with England and plunge Britain into uncharted constitutional and economic waters. Many British politicians and business leaders have long considered that outcome unlikely, ... 58388529@www.sltrib.com Mon, 08 Sep 2014 09:09:02 MDT Bank action alone cannot lift gloom over Europe http://www.sltrib.com/sltrib/money/58377919-79/ecb-economy-bank-eurozone.html.csp London • Europe has gotten another dose of stimulus. But the latest medicine by itself will not bring life to an economy that over the past six years has slid from crisis to crisis. Though the European Central Bank surprised markets Thursday with the broad thrust of its stimulus measures, most economists think the 18-country eurozone will continue to lag its counterparts, including the United States, for years. Several eurozone countries are still grappling with high public debt that keeps a lid... London • Europe has gotten another dose of stimulus. But the latest medicine by itself will not bring life to an economy that over the past six years has slid from crisis to crisis. Though the European Central Bank surprised markets Thursday with the broad thrust of its stimulus measures, most economists think the 18-country eurozone will continue to lag its counterparts, including the United States, for years. Several eurozone countries are still grappling with high public debt that keeps a lid... 58377919@www.sltrib.com Fri, 05 Sep 2014 09:45:01 MDT U.S. employers add 142K jobs, fewest in 8 months http://www.sltrib.com/sltrib/money/58377893-79/august-jobs-july-months.html.csp Washington • U.S. employers added just 142,000 jobs in August, snapping a six-month streak of hiring above 200,000 and posting the smallest gain in eight months. The unemployment rate fell to 6.1 percent from 6.2 percent, the Labor Department said Friday. But the rate dropped because more people without jobs stopped looking for one and were no longer counted as unemployed. Employers also added 28,000 fewer jobs in June and July than the government had previously estimated. The slowdown was unexp... Washington • U.S. employers added just 142,000 jobs in August, snapping a six-month streak of hiring above 200,000 and posting the smallest gain in eight months. The unemployment rate fell to 6.1 percent from 6.2 percent, the Labor Department said Friday. But the rate dropped because more people without jobs stopped looking for one and were no longer counted as unemployed. Employers also added 28,000 fewer jobs in June and July than the government had previously estimated. The slowdown was unexp... 58377893@www.sltrib.com Fri, 05 Sep 2014 09:34:02 MDT Fed: Median incomes drop for all but wealthiest http://www.sltrib.com/sltrib/money/58375637-79/percent-incomes-median-fed.html.csp Washington • A Federal Reserve report says the richest 10 percent of Americans were the only group whose median incomes rose in the past three years. The Fed’s report says incomes declined for every other group from 2010 to 2013, widening the gap between the richest Americans and everyone else. The report, which adjusted for inflation, finds that median income for the top 10 percent rose 2 percent, to $223,200 from $217,900. Median income fell 4 percent for the bottom 20 percent, to $15,200 from... Washington • A Federal Reserve report says the richest 10 percent of Americans were the only group whose median incomes rose in the past three years. The Fed’s report says incomes declined for every other group from 2010 to 2013, widening the gap between the richest Americans and everyone else. The report, which adjusted for inflation, finds that median income for the top 10 percent rose 2 percent, to $223,200 from $217,900. Median income fell 4 percent for the bottom 20 percent, to $15,200 from... 58375637@www.sltrib.com Thu, 04 Sep 2014 17:05:02 MDT Average U.S. 30-year mortgage rate holds steady http://www.sltrib.com/sltrib/money/58373741-79/mortgage-average-percent-rate.html.csp Washington • The average 30-year U.S. mortgage rate this week remained at a 52-week low of 4.10 percent for the third straight week. Mortgage company Freddie Mac also said Thursday the average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.24 percent from 3.25 percent. At its 52-week low of 4.10 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year. Rates have fallen even though the Federal Reserve has been trimming its ... Washington • The average 30-year U.S. mortgage rate this week remained at a 52-week low of 4.10 percent for the third straight week. Mortgage company Freddie Mac also said Thursday the average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.24 percent from 3.25 percent. At its 52-week low of 4.10 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year. Rates have fallen even though the Federal Reserve has been trimming its ... 58373741@www.sltrib.com Thu, 04 Sep 2014 10:10:01 MDT U.S. worker productivity up 2.3% in second quarter http://www.sltrib.com/sltrib/money/58373641-79/percent-productivity-quarter-costs.html.csp Washington • U.S. workers’ productivity increased in the April-June quarter after a big decline in the first quarter while their labor costs edged down slightly. Productivity, the amount of output per hour of work, rose at a seasonally adjusted annual rate of 2.3 percent in the second quarter, the Labor Department reported Thursday. That represented a large rebound from the first quarter when productivity fell at a 4.5 percent rate. Unit labor costs edged down 0.1 percent at an annual rate in th... Washington • U.S. workers’ productivity increased in the April-June quarter after a big decline in the first quarter while their labor costs edged down slightly. Productivity, the amount of output per hour of work, rose at a seasonally adjusted annual rate of 2.3 percent in the second quarter, the Labor Department reported Thursday. That represented a large rebound from the first quarter when productivity fell at a 4.5 percent rate. Unit labor costs edged down 0.1 percent at an annual rate in th... 58373641@www.sltrib.com Thu, 04 Sep 2014 09:44:02 MDT European Central Bank stimulus plan is a surprise http://www.sltrib.com/sltrib/money/58373605-79/ecb-percent-program-banks.html.csp Frankfurt, Germany • The European Central Bank has cut its interest rates and announced a new stimulus program that involves buying financial assets, a bid to salvage a weak economic recovery. In a press conference following a meeting Thursday, ECB President Mario Draghi said the bank would start purchases of private sector financial assets in October. The program aims to make credit cheaper, helping investment and growth at a time when the economy of the 18-country eurozone has stalled. The eco... Frankfurt, Germany • The European Central Bank has cut its interest rates and announced a new stimulus program that involves buying financial assets, a bid to salvage a weak economic recovery. In a press conference following a meeting Thursday, ECB President Mario Draghi said the bank would start purchases of private sector financial assets in October. The program aims to make credit cheaper, helping investment and growth at a time when the economy of the 18-country eurozone has stalled. The eco... 58373605@www.sltrib.com Thu, 04 Sep 2014 09:34:01 MDT U.S. services firms expand at fastest pace on record http://www.sltrib.com/sltrib/money/58373431-79/services-august-firms-fastest.html.csp Washington • U.S. services firms expanded in August at the fastest pace on record. The Institute for Supply Management says its services index rose to 59.6 last month from 58.7 in July. The August figure is the highest recorded since the measure was introduced in January 2008. Fifteen of 17 industries reported growth last month. Only mining and arts, entertainment and recreation contracted in August. The ISM is a trade group of purchasing managers. Its services survey covers businesses that empl... Washington • U.S. services firms expanded in August at the fastest pace on record. The Institute for Supply Management says its services index rose to 59.6 last month from 58.7 in July. The August figure is the highest recorded since the measure was introduced in January 2008. Fifteen of 17 industries reported growth last month. Only mining and arts, entertainment and recreation contracted in August. The ISM is a trade group of purchasing managers. Its services survey covers businesses that empl... 58373431@www.sltrib.com Thu, 04 Sep 2014 08:59:01 MDT