US economy sedate as inflation steadies
Friday 15 August 1997
Shares and bonds both rose in early trading yesterday in response to the data, which prompted one economist to say: "When you wrap it all up, all is well on the American scene. Growth is sedate and inflation is very much in check."
The consumer price index rose 0.2 per cent in July, the Labor Department said. Rises in food, housing and transport costs marginally outpaced a decline in energy costs and the first monthly fall in the price of healthcare for almost 22 years.
The rise in consumer prices was up from June's 0.1 per cent, but it left the increase for the first seven months of the year at just 1.5 per cent, less than half the rate of growth recorded in 1996.
Separately, industrial production slowed to a 0.2 per cent increase in July from June's 0.3 per cent rise. The fall followed figures earlier in the week showing producer prices falling for the seventh month in succession, the first time that had happened since 1931.
The pressure on interest rates was also eased by a large build-up in inventories, which rose in June for the sixth consecutive month.
The 0.7 per cent increase was the largest rise since April 1995 and is expected to lead to a slowing in economic activity in the second half of the year as unsold goods are pushed through the system.
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Friends 20th anniversary: Six things we wouldn't have without influential comedy series
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...