Weak factories, sentiment show shaky U.S. recovery

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Weak factories, sentiment show shaky U.S. recovery

Reuters – Factory output contracted in May for the second time in three months and families took a dimmer view of their economic prospects in early June, signs that the economy’s recovery is on shaky ground. Data released on Friday was the latest in a series of weak economic reports that have led analysts to cut growth forecasts while raising expectations the U.S. Federal Reserve could launch new stimulus measures. Until recently, manufacturing had been a buttress for the U.S. economy, helping it resist headwinds from Europe’s snowballing debt crisis. But in May, factory output shrank 0.4 percent, with U.S. plants producing fewer cars and less machinery, Federal Reserve data showed. Read Article

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