Economy, Manufacturing | featured news

The number of Americans filing new claims for jobless benefits unexpectedly rose last week while US manufacturing improved only slightly in August, worrisome signs for an economy struggling to create enough jobs.

The manufacturing sector grew in July at its slowest pace in nearly three years as a debt crisis in Europe and economic and political uncertainty at home dented demand, a survey showed on Wednesday.

Manufacturing this month expanded at its slowest pace since late 2010, hobbled by weak overseas demand for American goods, though a rise in domestic orders helped cushion the blow.

New orders for U.S. factory goods rose more than expected in May, a hopeful sign for U.S. manufacturers who have appeared more vulnerable to Europe's festering debt crisis.

U.S. manufacturing shrank in June for the first time in nearly three years, a troubling sign that the economy is faltering. The Institute for Supply Management, a trade group of purchasing managers, said Monday that its index of manufacturing activity fell to 49.7. That's down from 53.5 in May and the lowest reading since July 2009, one month after the recession officially ended. Readings below 50 indicate contraction.

Manufacturing output contracted in May for the second time in three months and a gauge of factory activity in New York state plunged this month, worrisome signs the American economy is cooling.

It’s hard to think of an extravagant prediction that hasn’t been made about America’s recent natural-gas boom. Let’s see: Cheap natural gas will wipe out coal. It will make the U.S. energy independent. And, oh yes, it will create one million manufacturing jobs and revitalize the Midwest.

Manufacturing grew in April at the strongest rate in 10 months, easing concerns the economy had lost momentum at the start of the second quarter.

New orders for U.S. factory goods rebounded in February and firms increased orders for capital goods, suggesting manufacturing held on to some momentum early in the year.

The pace of growth in the manufacturing sector picked up a tad in March, while new orders dipped modestly, according to an industry report released on Mon day.