Economic News

CHICAGO (Dow Jones) -- Defying rising gasoline and utility prices and extending their April shopping spree, consumers rushed to shopping centers and malls in May, though there were signs that lower-income consumers may be starting to feel the energy squeeze. U.S. retailers posted mostly higher May same-store sales on Thursday. That bucked the tone set by Wal-Mart Stores Inc., which said it is s ...

WASHINGTON (Dow Jones) -- The signs are only tentative, but some early indicators point to a slower pace of hiring. After getting a sluggish start coming out of the 2001 recession, payroll growth has been fairly steady for the past three years. It's been almost too strong, with the unemployment rate falling to 4.7%, low enough to start feeding inflation, some economists say. The Labor Depart ...

By Nigel Davies LONDON (Reuters) - The next move in interest rates is now more likely to be a rise, but an imminent change is unlikely because of mounting inflation risks, an appreciating pound and lacklustre consumer spending, a Reuters poll shows. The median forecast of 40 economists, surveyed between May 30-June 1, showed the Bank of England (BoE) holding rates at 4.5 percent until at least the end of March next year. But half of those forecast rates to rise to 4.75 percent or above by the ...

The benchmark Japanese government 10-year bond yield recorded its biggest single-day leap since 2003 on Thursday, highlighting the feverish expectations of an end to the Bank of Japan’s five-year old zero-interest rate policy. // Analysts said a cluster of factors worked together in deadly combination for bond prices. A generally bearish outlook for JGBs was heightened by a very weak auction of 1 ...

WASHINGTON (Dow Jones) -- U.S. construction outlays eased 0.1% in April, dragged down by a 1.1% drop in spending on home construction, the Commerce Department said Thursday. It marked the lowest level for spending on private residential construction projects since January 2004. "Builders appear finally to be starting to try to reduce their rapidly expanding inventory," said High Frequency Ec ...

WASHINGTON (Dow Jones) -- A key gauge of the strength of the U.S. factory sector slowed modestly in May, the Institute for Supply Management reported Thursday. The ISM index fell to 54.4% in May from 57.3% in April. This is the lowest level since August. The decline was slightly larger than expected. Economists were expecting a decrease to 55.8% in April, according to the survey conducted by ...

The European Central Bank on Thursday divided the role of its “chief economist” in a sweeping management re-shuffle that will allow an evolution in ECB thinking and actions, even while stressing policymaking continuity and links with Germany’s Bundesbank. // The principle responsibilities of Otmar Issing, the former Bundesbanker who stepped down this week after eight years at the ECB, were split between Jürgen Stark, also from the Bundesbank, and Lucas Papademos, the ECB’s vice-president. Mr St ...

By Carola Hoyos in CaracasPublished: June 1 2006 17:23 | Last updated: June 1 2006 17:23Ministers of the Organisation of the Petroleum Exporting Countries, the oil cartel, on Thursday united against Venezuela to reject its call to cut the group’s production. // The vast majority of the 11 delegates meeting in Caracas on Thursday said they were set to agree to keep pumping at nearly maximum capac ...

WASHINGTON (Dow Jones) -- The U.S. economy is more productive and less inflation-prone than suspected. Productivity in the U.S. nonfarm business sector rose at an annual rate of 3.7% in the first quarter, stronger than the 3.2% gain reported earlier, the Labor Department said Thursday. Unit labor costs -- a key gauge of inflationary pressures stemming from wages -- were revised lower to a 1. ...

| Eurozone manufacturing growth hits six-year highBy Ralph Atkins in FrankfurtPublished: June 1 2006 10:49 | Last updated: June 1 2006 10:49Eurozone manufacturing growth has reached the fastest rate for almost for six years, according to the latest figures that suggest the economic upswing in the 12-country region has extended well into the second quarter of this year. // The unexpected rise in the eurozone manufacturing purchasing managers’ index, from 56.7 in April to 57.0 in May, marked the  ...