WASHINGTON - After driving the u.s. economy in recession, then marked and last year in the summer, manufacturers could receive a second breath.
Plant increased production in October by the most since July, the Federal Reserve said mardi.Son report is in response to several other positive reading on the economy, including data published Monday which showed retail Pink October sales by more than seven months.
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"After a somewhat disappointing summer, economic recovery could be pick up," said Paul Ashworth, an economist at capital economics.
And a report on the wholesale price Tuesday showed that the increase in production and sale are not prices enough to fears of inflation ventilateur.Qui gives the latitude of the Federal Reserve to achieve binding purchase plan 600 billions of dollars to try to reduce interest rates to stimulate growth.
Plan purchase obligations of the Federal Reserve has attracted criticism from some economists who say that it would trigger a galloping inflation more tard.Mais several analysts said Petting wholesale price report Tuesday, provide support for the move of the Federal Reserve.
"Incoming data suggest, at least for now, the Fed was justified in its decision," said Diane Swonk, Chief Economist at Mesirow Financial.
Producers increased their production of 0.5 percent for the month of October, said Fed.Le gain was led by increasing production of goods such as cars, appliances and equipment of the company. Overall, the industrial production is unchanged last month - but only by a decrease in output utilities such as exceptionally hot reduced demand for heating.
Economists welcomes the increase in production of the plant as a sign that the companies and consumer spending is sustainable growth, the pace is still modest.
Wholesale prices increased in October, the fourth straight mensuelle.Le gain increase is mainly due to an increase in the cost of gas, and is there were no signs of inflation important as the cost of food, cars and computers that have all fallen.The producer price index rose by 0.4%, said the Ministry work f.l. ' index increased by 4.3% in the last 12 months.
But to the exclusion of the volatile food and energy category, "core" index fell by 0.6 %.C'est declining more marked more than four years.The decline was carried out by the decline in prices of cars and trucks.
The report measures price pressure prior to reaching the consumer. He showed that companies had little capacity to transmit the higher costs that they pay you for grains and other foodstuffs produits.Prix fell slightly confusing expectations that they would increase due to the higher prices for corn, soybeans and sugar.
With the exception of the fall of the price of the automobile, the index increased 0.2 percent said economists .the ' index base increased by only 1.5 per cent in the last 12 months.
With prices in large part in the audit, reserve US Federal said earlier this month it will buy 600 billion in government bonds within eight months to try to reduce the interest rates in the long term.The idea is that lower rates could raise the price action as investors transfer money obligations to low yield and inventory.Increase in stock prices would people feel richer and more willing to spend.
And if business leaders are becoming more confident that their personal wealth rises, they are more likely to hire and develop.Once that they do, would strengthen the economy.
When he announced the program, the Fed said that "the measures of underlying inflation are relatively low" at the levels it considers compatible with price stability.
Car prices fell a seasonally adjusted 3 percent in October, the Ministry said, and the truck prices fell 4.3%.Both were the largest drop in four years.
The Department incorporates the impact of the price of new cars model motor vehicle manufacturers introduce each year into the index of October.New car prices rose last month but less for years précédentes.Dans framework process correction of seasonal variations the Department, which translates into lower prices.
Consumers responded by buying cars at a healthy rate since "cash for Clunkers" program in August 2009.Ventes motor dealers increased by 5% in October.
Grain prices rose last month, but food companies are passing on increases in prices for consommateurs.Ma?s prices rose 22.7% and 10.9 %.Mais soybeans costs of beef and veal, which can increase when feed grains are more expensive step fell 5.8%, the Ministry of labour said.
Agricultural commodity prices have given some of their earnings in the last weeks of retour.Ma?s declined almost 9% in November, even though it is still at 28 per cent this année.Blé has dropped nearly 12% this month, but remaining 17 percent since January.
High unemployment and the weakness of the economy, retailers may hunt away frugal shoppers by increasing the prix.Qui could change coming months if corn and other grains remain high or mounted curriculum vitae, said price Jonathan Basile, an economist at Credit Suisse.Les food manufacturers can not keep absorb additional costs.
Last week, Sara Lee Corp. said rising raw materials prices cut into profits first quarter, down from 32 %.La society said it raised prices in all areas, but increases were insufficient to offset the expensive products.
Separately, the National Association of Home Builders said Tuesday that his monthly index constructor checked, feeling up to a point, last month 16, its highest level since juin.Perspectives industry remains still, sombre.Lectures below 50 indicate a negative perspective.
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