Orders to US factories hit their highest level in more than two years in July and service sector activity grew solidly, according to reports out yesterday that showed continued improvements in the US economy.
But employment continued to show signs of strain, as the number of first-time jobless claims unexpectedly rose last week by 15,000, with only modest rises seen in service sector hiring.
President Bush addressed the sluggish job market yesterday, outlining a six-point economic plan to "ensure a full economic recovery and create jobs in America".
Mr Bush proposed ways to reduce the cost of health coverage for small businesses, to streamline regulation and to change class-action lawsuit procedures.
Federal Reserve governor Mr Ben Bernanke added to the generally upbeat economic sentiment by suggesting that increased economic growth was not likely to elicit a rise in US interest rates in the near-term.
He said the Fed could even ease rates under conditions of persistent economic growth that was not accompanied by a steady rise in jobs.
The factory sector data, compiled by the Department of Commerce, showed new orders for US manufactured goods in July rose 1.6 per cent - or $5.3 billion (€4.9 billion) - in July to their highest levels since May 2001. - (Financial Times Service)
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