U.S. Economy: Manufacturing, Claims Point to Slowdown

Reports on U.S. manufacturing, employment and home sales pointed to slower growth in the second half of the year, just as government spending to stimulate the economy begins to wane.

The Institute for Supply Management’s manufacturing gauge fell more than forecast to 56.2 last month from 59.7 in May. A reading greater than 50 points to expansion. Other data showed contracts to buy existing homes fell 30 percent in May, and claims for jobless benefits unexpectedly rose last week.

Stocks and commodities slumped and Treasuries rose on signs the global economy is cooling after manufacturing weakened in Europe and China. The data underscore concerns of Federal Reserve policy makers that financial-market turmoil sparked by Europe’s debt crisis threatens to inhibit a self-sustaining recovery in the U.S.

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- Posted: 2010-07-01 22:57:34

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