Thursday, March 1, 2012

Factory growth cools, spending stagnant


(Reuters) - U.S. manufacturing cooled in February and consumer spending was flat for a third straight month in January, suggesting the economy lost more steam early this year than expected.

"Things aren't so rosy in the garden and the consumer is still facing significant headwinds," said Ray Attrill, a currency strategist at BNP Paribas in New York.

Other reports on Thursday were more upbeat, with new claims for jobless benefits last week hovering near four-year lows and retailers and automakers enjoying brisker February sales.

Nevertheless, the spending and factory data cut into the optimism generated by a recent drop in the unemployment rate, and suggested rising energy prices were taking a toll.

Read more: http://www.reuters.com/article/2012/03/01/us-usa-economy-idUSTRE7BM0AB20120301

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