Post by Forever Sunshine on Jun 15, 2012 22:15:11 GMT -5
WASHINGTON (Reuters) - Manufacturing output contracted in May for the second time in three months and families took a dimmer view of their economic prospects in early June in signs the American economy's recovery is on shaky ground.
Factory production shrank 0.4 percent last month, the Federal Reserve said on Friday.
"It's more convincing evidence that the economy is stuck in low gear," said Joe Manimbo, a market analyst at Travelex Global Business Payments.
Until recently, manufacturing had been a buttress of strength for the U.S. economy, helping it to resist headwinds from Europe's snowballing debt crisis.
But in May, output sank at American plants making everything from cars to computers while another report showed factory activity in New York state cooled in early June.
Now household confidence in the economy is falling amid worries about deterioration in the jobs market and Europe's debt crisis.
money.msn.com/business-news/article.aspx?feed=OBR&date=20120615&id=15229334
Factory production shrank 0.4 percent last month, the Federal Reserve said on Friday.
"It's more convincing evidence that the economy is stuck in low gear," said Joe Manimbo, a market analyst at Travelex Global Business Payments.
Until recently, manufacturing had been a buttress of strength for the U.S. economy, helping it to resist headwinds from Europe's snowballing debt crisis.
But in May, output sank at American plants making everything from cars to computers while another report showed factory activity in New York state cooled in early June.
Now household confidence in the economy is falling amid worries about deterioration in the jobs market and Europe's debt crisis.
money.msn.com/business-news/article.aspx?feed=OBR&date=20120615&id=15229334
© 2011 -- 
Crap, the Name Escapes Me 
