Friday, September 14, 2007

Further signs of US economic pain

BBC

Retail sales and industrial output both slowed in the US last month, as the economy felt the strain from the housing slump and credit squeeze.

Shop sales grew 0.3% in August, below market expectations of a 0.5% rise and below July's 0.5% increase.

Industrial output rose 0.2%, the slowest pace in the past three months.

Analysts said the figures reinforced the case for the Federal Reserve to cut interest rates when it meets to decide on borrowing costs next week.

US stock markets fell on the news, the Dow Jones index dropping as much as 76 points after opening in New York, but paring some of its losses later in the session to trail by 15.8 points at 13,409.1.......

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