Economic News

By Sumeet Desai and Fiona Shaikh LONDON (Reuters) - Manufacturing activity grew at its fastest pace in almost two years in June as price pressures increased, a survey showed on Monday, boosting expectations of an interest rate hike before year-end. The Chartered Institute of Purchasing and Supply/RBS Purchasing Managers' Index jumped to 55.1 last month, its highest since July 2004, from 53.5 in May and well above analysts' expectations for 53.2. Short sterling rate futures fell and the pound  ...

LONDON (Reuters) - The economy is likely to expand faster over 2006, Treasury minister Ed Balls said on Monday. His comments in a speech to be delivered later in the day follow news that productivity growth in the first three months of the year picked up to its sharpest rate since late 2004. "Today's data show that just as GDP growth has been stronger than first thought, so too has productivity  ...

Treasurys rallied Friday, sending yields sharply lower, after a mixed batch of inflation data did little to sway market expectations that the Federal Reserve's interest-rate tightening campaign is coming to a close. The 10-year note was last trading up 14/32 at 99 28/32. Its yield, (TNX) which moves opposite to its price, stood at 5.141%, compared with 5.205% late Thursday. We're seeing "a f ...

SAN FRANCISCO (Dow Jones) -- U.S. equities could gain modestly in the coming holiday-shortened trading week, as the third quarter opens and investors mull the prospect that the Federal Reserve might suspend its two-year run of interest-rate increases. U.S. trading will be abbreviated Monday, and equity markets are closed Tuesday for Independence Day. The markets "are more likely to tread wat ...