Tag Archives: January March

Business, Finance, Occupation & Industry

Growth in Smartphone Sales Belongs to Asia

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By Reuters

smartphone sales asia mobile technology internet apple samsung telecom

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AFP/Getty Images

By Jeremy Wagstaff
and Lee Chyen Yee

SINGAPORE — After five years of explosive growth sales of high-end smartphones have hit a plateau and the $2 trillion industry — telecom carriers, handset makers and content providers — is buckling up for a bumpier ride as growth shifts to emerging markets, primarily in Asia.

While carrier subsidies have helped drive sales of high-end devices in mature markets, the next growth chapter will be in emerging markets where cost-conscious users demand cheaper gadgets and cheaper access to cheaper services.

This year, the number of mobile Internet users in the developing world will overtake those in the developed world for the first time — growing 27 times since 2007, compared to the developed world’s fourfold growth, according to estimates from the International Telecommunications Union.

“The center of gravity in the mobile ecosystem is likely to shift from the United States and Western Europe toward Asia,” Mary Ellen Gordon, director at mobile advertiser Flurry, said in an emailed interview.

That shift is a challenge to profit margins at the likes of Apple (AAPL) and Samsung Electronics, which together sell half of the world’s smartphones. Both companies announce quarterly results this week.

Samsung has indicated its second-quarter operating profit will fall short of estimates as demand for high-end smartphones slows. Apple is also exploring cheaper iPhone models that come in different colors to tap the mass segment, sources have said.

Neither faces any kind of crisis. But, industry experts say, many users in mature markets who want a smartphone already have one. European smartphone shipments grew 12 percent in January-March from a year ago, the slowest growth since IT research-firm IDC started tracking the mobile market in 2004.

Asia: A Driving Force

Many of the new mobile users will be in Asia Pacific. The region will this year have more mobile Internet users than Europe and the Americas combined, ITU predicts. And there’s plenty of room to grow: fewer than 23 in 100 in Asia are mobile Internet users, versus 67 in Europe and 48 in the Americas.

“Asia will be the driving force of global growth for the next two decades,” says Scott Lee, head of Asia at Appsnack, a division of U.S. based digital advertising company Exponential Interactive.

The catch: much of this growth will come from users of devices that are up to 10 times cheaper than those in the developed world. Cheaper components, easy and fast access to latest versions of Google’s (GOOG) Android operating system, reference designs from chipmakers and falling prices of the chipsets themselves are pushing this, says Frederick Wong, a portfolio manager at tech-focused eFusion Investment, who owns four smartphones.

China, the world’s biggest mobile market — where only about a fifth of …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Survey: Brighter U.S. Economic Outlook Boosts Hiring

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By The Associated Press

Survey: Brighter U.S. economic outlook boosts hiring

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John Amis/APIn this May 30, 2013, file photo, job seekers line up to register to attend a job fair in Atlanta.

By CHRISTOPHER S. RUGABER

WASHINGTON – Companies are increasingly confident the economy will grow at a modest pace over the next year and are hiring more, according to a survey of business economists.

Nearly one-third of the economists surveyed by the National Association for Business Economics said their companies added jobs in the April-June quarter, according to a report released Monday. That’s the highest percentage in nearly two years. And 39 percent expect their firms will hire more in the next six months. That’s near the two-year high of 40 percent reached in the January-March quarter.

The hiring pickup occurred even though sales and profit growth slowed in the second quarter.

Optimism about future economic growth increased. Nearly three-quarters of the survey respondents forecast growth of 2.1 percent or more over the next 12 months. That’s up from two-thirds in the first quarter survey, released in April, and the most in a year.

The quarterly survey’s results echo much of the recent data tracking the economy. Growth has been slow in the past nine months, but employers have added jobs at a healthy pace. Many economists anticipate that the steady hiring will help accelerate growth in the second half of this year.

The NABE surveyed 65 of its member economists between June 18 and July 2. The economists work for companies from a variety of industries, including manufacturing, transportation and utilities, finance, retail and other services.

Among the findings:

– Only about 35 percent of the respondents said sales at their firms increased in the second quarter. That’s sharply lower than the 55 percent who reported rising sales in the first quarter. And 15 percent said sales fell, up from 9 percent in the first quarter.

– Profit growth also slowed: Only 21 percent of respondents said profit margins increased last quarter, down from 29 percent in the first.

– Only 19 percent of economists said their firms were raising wages and salaries, down from 31 percent in April and the lowest proportion since October.

– A small but increasing minority of respondents say that government spending cuts and tax increases have hurt their businesses. Twenty-six percent of the economists said their firms were negatively impacted, up from only 16 percent in April. Still, 74 percent said the government policies had no impact on their businesses, though that’s down from 79 percent three months earlier.

Looking ahead, companies are increasingly concerned about higher interest rates. That reflects the jump in rates that took place following Federal Reserve Chairman Ben Bernanke’s comments in late May that the Fed could slow its bond-buying program later this year. Those purchases are intended to keep interest rates low.

The interest rate on …read more

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

India clubs oppose new IPL-style league

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India’s top football clubs have hit out at the national federation over moves to stage a cash-rich franchise-based tournament inspired by cricket’s popular Indian Premier League early next year.

The All India Football Federation (AIFF) and its commercial partner, IMG-Reliance, plan to hold the eight-city tournament in January-March featuring as-yet-unnamed international and local stars.

But the clubs have declined to release their players for the tournament, which they say will threaten their existence and ruin the national I-League domestic competition.

“We don’t think the new league will be beneficial to Indian football,” said Raj Gomes, who heads the I-League Professional Football Clubs Association. “How can we allow players to play for another club in the middle of the season?”

Valanka Alemao, the chief executive officer of popular Goa-based club Churchill Brothers, also vigorously opposed the proposed tournament.

“I do not understand why the AIFF wants to hold a new league,” Alemao said. “This new entity will eventually supersede the I-League and cause the slow death of existing clubs.

“The common goal should be to improve Indian football. How does it help if you get some retired or semi-retired players to grab a few eyeballs for a minute?

“It will benefit everyone if the AIFF tries to improve the I-League, instead of starting another tournament,” she said.

AIFF general secretary Kushal Das said the clubs’ fears were unfounded and he remained confident he would be able to persuade them to come on board.

“I am talking to the clubs and we should be able to resolve this matter quickly,” said Das.

“We are all for the betterment of football and IMG-Reliance is definitely here for the betterment of football. If there was no hope for Indian football they would not be here.

“The I-League has been on for more than 10 years and it has still not caught the attention of viewers and sponsors. The new league has the potential to raise the commercial value of Indian football.”

India are currently ranked a lowly 146th in the world, but the sport’s popularity in the cricket-mad nation has grown due to live television coverage of matches played around the globe.

Last year, football officials in West Bengal state had announced plans for a similar franchised-based league that would feature semi-retired stars like Argentina’s Hernan Crespo and Fabio Cannavaro of Italy playing alongside district-level players.

But the tournament was not held, reportedly due to lack of proper infrastructure in the state and lack of interest shown by the AIFF.

…read more

Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Hike in Payroll Taxes Hasn't Halted U.S. Consumer Spending

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By The Associated Press

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Spencer Platt/Getty Images

By CHRISTOPHER S. RUGABER

WASHINGTON — This year got off to a sour start for U.S. workers: Their pay, already gasping to keep pace with inflation, was suddenly shrunk by a Social Security tax increase.

Which raised a worrisome question: Would consumers stop spending and further slow the economy? Nope. Not yet, anyway.

On Friday, the government said consumers spent 3.2 percent more on an annual basis in the January-March quarter than in the previous quarter — the biggest jump in two years. It highlighted a broader improvement in Americans’ financial health that is blunting the impact of the tax increase and raising hopes for more sustainable growth.

Consumers have shed debt. Gasoline has gotten cheaper. Rising home values and record stock prices have restored household wealth to its pre-recession high. And employers are steadily adding jobs, which means more people have money to spend.

“No one should write off the consumer simply because of the 2 percentage-point increase in payroll taxes,” says Bernard Baumohl, chief economist at the Economic Outlook Group. “Overall household finances are in the best shape in more than five years.”

Certainly, spending weakened toward the end of the January-March quarter. Spending at retailers fell in March by 0.4 percent, the worst showing in nine months. And more spending on utilities accounted for up to one-fourth of the increase in consumer spending in the January-March quarter, according to JPMorgan Chase (JPM) economist Michael Feroli, because of colder weather.

Higher spending on utilities isn’t a barometer of consumer confidence the way spending on household goods, such as new appliances or furniture, would be.

Americans also saved less in the first quarter, lowering the savings rate to 2.6 percent from 3.9 percent in 2012. Economists say that was likely a temporary response to the higher Social Security tax, and most expect the savings rate to rise back to last year’s level. That could limit spending.

But several longer-term trends are likely to push in the other direction, economists say, and help sustain consumer spending. Among those trends:

Wealth Is Up

Home prices rose more than 10 percent in the 12 months that ended in February. And both the Dow Jones industrial average (^DJI) and Standard & Poor’s 500 (GSPC) stock indexes reached record highs in the first quarter. As a result, Americans have recovered the $16 trillion in wealth that was wiped out by the Great Recession. Economists estimate that each dollar of additional wealth adds roughly 3 cents to spending. That means last year’s $5.5 trillion run-up in wealth could spur about $165 billion in additional consumer spending this year. That’s much more than the $120 billion cost of the higher Social Security taxes.

Debt Is Down

Household debt now equals 102

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

US unemployment aid applications rise to 352K

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The number of Americans seeking unemployment benefits increased just 4,000 last week to a seasonally adjusted 352,000. The slight gain kept applications at a level consistent with solid hiring and suggests March’s sluggish hiring may be temporary.

The Labor Department report released Thursday also noted that the four-week average, a less volatile measure, rose to 361,250.

Applications are a proxy for layoffs. They jumped three weeks ago to a four-month high, but then plummeted the following week. The sharp fluctuations reflected volatility around the Easter holiday, department officials said. Overall, applications have declined slightly since January.

Job growth slowed sharply in March. Employers added only 88,000 jobs last month, much lower than the average monthly gain of 220,000 from November through February.

The drop in applications is among the reasons many economists predict job growth rebounded this month, to around 150,000 net jobs.

Declines in applications signal that companies are laying off fewer workers. But layoffs are only half of the equation. Businesses also need to be confident enough in the economic outlook to add more jobs.

The unemployment rate fell to 7.6 percent in March, down from 7.7 percent in February. Still, the drop occurred because more people out of work stopped looking for jobs. The government doesn’t count people as unemployed unless they are actively looking for work.

The economy is expected to grow at a much quicker pace in the January-March quarter than in the final three months of last year. Most economists forecast growth could top an annual rate of 3 percent in the first quarter, up from just 0.4 percent in the fourth quarter.

But many analysts now expect growth will slow in the April-June quarter, mostly because across-the-board government spending cuts kicked in March 1. That may have made some businesses nervous about hiring last month

From: http://feeds.foxnews.com/~r/foxnews/national/~3/K9aVXAE4QHo/

News, Politics, Government

Can eBay's Earnings Continue To Impress?

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By Trefis Team, Contributor

eBay capped off a great year with a spectacular holiday season quarter. Increased adoption of mobile devices for e-commerce and payment purposes saw the company beat its own estimates for the year. Buoyed by the performance, the company set aggressive targets for 2015. At the recently held eBay’s annual investor day, the company announced a target of growing annual earnings in the 15-19% range over the next three years. It is also targeting an increase in revenue by about 70% for the period from $14 billion in 2012. The first hints about the company’s initial success will become evident when it releases its earnings for the January-March quarter on April 17. We expect it to continue its rapid growth helped by the growing adoption of m-commerce and PayPal. We also look forward to the company’s plans towards supporting expansion into emerging markets, particularly the BRIC (Brazil, India, Russia and China) countries. eBay competes primarily with Google, Square, Intuit GoPayment and few other companies in the payments space, and Amazon in e-commerce. Check out our complete analysis of eBay

From: http://www.forbes.com/sites/greatspeculations/2013/04/12/can-ebays-earnings-continue-to-impress/

News, Politics, Government

US businesses boosted stockpiles only 0.1 pct.

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U.S. companies restocked their shelves at a much slower pace in February than January, a sign they expected consumer and business spending to weaken.

The Commerce Department says business stockpiles increased only 0.1 percent in February. That’s the smallest gain since June and down from a 0.9 percent increase in January, which was revised slightly lower.

Total business sales rose at a healthy 1.2 percent pace in February, mostly because retail sales grew. But a separate report Friday showed retail sales fell in March.

Restocking helps drive economic growth. When companies order more goods, factory output increases. Economists had expected a bigger gain in stockpiles in February, so the lackluster increase could lead some to pare back their economic growth forecasts for the January-March quarter.

From: http://feeds.foxnews.com/~r/foxnews/national/~3/7TrDS093kmw/

Science & Technology

Wholesalers Cut Stockpiles to Lowest Level in 17 Months

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By The Associated Press

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Wilfredo Lee/APShipping containers are shown stacked at the Port of Miami in January. Data released Tuesday show U.S. wholesalers cut restocking in February to levels not seen in 17 months.

By CHRISTOPHER S. RUGABER

WASHINGTON — U.S. wholesalers cut their restocking in February by the most in 17 months. But their sales jumped, suggesting companies underestimated consumer demand.

The Commerce Department said Tuesday that stockpiles at the wholesale level declined 0.3 percent in February. That followed a 0.8 percent increase in January, which was revised lower.

The decline was the first in eight months and the biggest since September 2011. Farm products and gasoline led the drop. Agriculture stockpiles have fallen in recent months because of a drought in the Midwest.

Sales at the wholesale level rose 1.7 percent, the most since November. The increase was led by large gains in gasoline, clothes and computers.

Shrinking stockpiles weigh on economic growth because it means factories are producing fewer goods. But a jump in consumer spending in February suggests companies will have to build their stockpiles faster in the coming months, which should spur more growth.

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Sluggish growth in stockpiles was a key reason the economy barely grew in the October-December quarter. But economists are looking for a significant rebound in business restocking this year, helped by a resilient consumer that has continued to spend despite paying higher taxes.

Most economists expect growth accelerated in the January-March quarter to an annual rate of more than 3 percent. That would be a vast improvement over the 0.4 percent growth in the final three months of 2012.

In January, Social Security taxes rose on nearly all Americans who draw a paycheck. The increase leaves a person earning $50,000 with about $1,000 less to spend in 2013. A household with two high-paid workers will have up to $4,500 less.

But Americans spent more in January and February. Many analysts now expect consumer spending rose by about 3 percent at an annual rate in the first quarter. That would be much faster than the fourth quarter’s 1.8 percent pace.

The jump in spending will likely force many companies to order more goods to restock their shelves.

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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Don't Put Too Much Stock In Alcoa For Earnings Season Insight

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By Steve Schaefer, Forbes Staff

Bearded driver uses phone

Alcoa will provide the informal kickoff to first-quarter earnings season Monday afternoon as the first Dow Jones industrial average component to report figures for the January-March period. But investors shouldn’t count on the aluminum producer’s results as any kind of crystal ball for the rest of Corporate America‘s report cards. …read more

Source: FULL ARTICLE at Forbes Latest

Business, Finance, Occupation & Industry

Gold Set to Smash Through $1,800 per Ounce by Year's End

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By Royston Wild, The Motley Fool

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LONDON — Gold prices have remained in the doldrums in recent months, putting in their worst quarterly performance in more than 10 years during January-March and conceding 5.3% since the start of the year. The metal plumbed as low as $1,540 per ounce late last week — its cheapest since May 2011 — before recovering ground to $1,570 recently.

However, I am convinced that current prices provide a sound base from which investors can build excellent returns. I believe that a backdrop of escalating macroeconomic and political uncertainty, particularly in Europe and the U.S., combined with rising inflation should push the store-of-value asset higher in coming months. And investors can tap into this theme by purchasing SPDR Gold Trust  and Gold Bullion Securities , instruments that are designed to track movements in the gold price.

Analysts predict golden charge later in 2013
Metals consultancy Thomson Reuters GFMS announced last week that it expects gold prices to soar above $1,800 per ounce by the end of 2013, providing chunky upside from current levels. Specifically, the forecasters reckon that the likelihood of fresh political turmoil in the U.S. could herald fresh safe-haven investment in the yellow metal as the year progresses.

The twin issue of heavy budgetary cutbacks, and discussions over the lifting of the country’s debt ceiling, could prompt fresh battles between Democratic and Republican lawmakers in the coming months, and GFMS does not expect these issues to be resolved in the near future.

Ongoing QE to boost store-of-value metal
The consultancy noted a multitude of other supportive factors for the gold price, such as the continued implementation of loose monetary policy by the Federal Reserve. GFMS says that it does not expect the current unlimited quantitative easing program to start to wind down until well into 2014 at the earliest — these measures erode the value of the dollar, increasing inflation and boosting demand for hard currencies like gold.

Elsewhere, the possibility of political and economic turbulence in the eurozone could send gold interest higher, the organization added. Inflows into gold exchange-traded funds (ETFs) received a shot in the arm last month, while discussions regarding the Cypriot bailout were at their height, during which time gold struck its highest since early February around $1,615 per ounce.

Central bank demand for gold remains bubbly — official sector purchases hit their highest since the 1960s last year, at 534.6 tonnes, according to the World Gold Council — due to doubts over the state of the global economic recovery and escalating fears over the value of fiat currencies. I expect these themes to boost gold prices much higher as the year progresses.

Mine gold stocks for gains
Investors can also gain exposure to a rising gold price through shrewd stock picks in the mining sector. Galloping demand for natural resources should continue to drive broader commodity stocks higher over the long-term.

This special wealth report from The Motley Fool — “10 Steps to Making a Million in the …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

U.S. Trade Gap Narrows in February on Stronger Oil, Auto Exports

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By The Associated Press

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Patrick Semansky/AP

By MARTIN CRUTSINGER

WASHINGTON — The U.S. trade deficit unexpectedly narrowed in February as exports climbed close to an all-time high and the volume of imported crude oil fell to the lowest level in 17 years.

The gap between exports and imports shrank to $43 billion in February, down 3.4 percent from January’s revised $44.5 billion, the Commerce Department said Friday. It was the smallest trade imbalance since December when the gap had declined to $38.1 billion, the lowest point in nearly three years.

Exports rose 0.8 percent to $186 billion, close to the record high set in December. Stronger exports of U.S. energy products and autos offset declines in sales of airplanes and farm equipment. Imports were flat at $228.9 billion with the volume of crude oil falling to the lowest point since March 1996.

The politically sensitive deficit with China shrank to $23.4 billion, the lowest point in 11 months. Exports to the European Union were down 0.9 percent in February, compared to January, reflecting continued economic weakness as that region struggles with a recession triggered by a debt crisis.

Through the first two months of this year, the U.S. deficit is running at an annual rate of $524.5 billion, down slightly from last year’s $539.5 billion imbalance.

Economists expect the deficit this year will narrow slightly, in part because of continued gains in U.S. energy exports. A narrower trade gap boosts growth because it means U.S. companies are earning more from overseas sales while U.S. consumers and businesses are spending less on foreign products.

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But Paul Dales, senior U.S. economist at Capital Economics, said that he was worried that expectations for exports to keep rising faster than imports may fall short given uncertain global conditions.

“We are concerned that subdued global demand will hold back export growth. And the rest of the data released this week makes us more concerned that the domestic economy is a bit weaker than we thought,” he said.

In a separate report Friday, the government said that the U.S. economy created just 88,000 jobs in March, the fewest in nine months.

The economy as measured by the gross domestic product grew at an annual rate of 0.4 percent in the October-December quarter. Economists believe economic growth strengthened in the January-March quarter to around 3 percent.

In addition to increases in U.S. energy exports, economists are also hopeful that exports of other products will rise this year as well, helped by stronger growth in some major export markets.

Taking a Harder Line on China

That forecast is based on an assumption that the European debt crisis will stabilize, helping boost exports to that region and that growth in Asia will rebound further. The outlook for Europe has been clouded in …read more

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

US factory orders up 3 percent in February

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U.S. factories rose sharply in February from January on a surge in demand for volatile aircraft. The gain offset a drop in key orders that signal business investment.

The Commerce Department said Tuesday that factory orders increased 3 percent in February. That’s up 1 percent decline in January and the biggest gain in five months.

The increase was due mostly to a jump in orders for commercial aircraft. Those orders rose 95.1 percent. Orders for motor vehicles and parts also increased 1.4 percent.

Orders for all durable goods, which are products expected to last at least three years, jumped 5.6 percent. Orders for nondurable goods, such as processed food and clothing, rose 0.8 percent.

Despite the gains, the report showed that a key measure of business investment plans fell. That could mean that some companies were worried in February about steep federal spending cuts that started on March. 1.

Core capital goods, which include machinery and equipment orders, fell 3.2 percent. Demand for construction machinery, turbines and generators all fell sharply. Orders for computers and electronic products rose slightly.

Economists closely watch these orders because they signal business investment plans.

Still, the decline followed a 6.7 percent surge in January, the largest in nearly three years. Analysts said that when averaging the two months, business investment orders showed a solid increase for the January-March quarter. Many expect the gains to resume this spring, helped by a stronger job market that has kept consumers spending.

Consumers stepped up spending in February after their income jumped. The gain occurred even after Social Security taxes increased in January, reducing take-home pay for most Americans.

Many economists raised their growth forecasts after the report was released. Some are predicting growth could increase to around 3 percent in the January-March quarter, up from 0.4 percent in the previous three months.

Other data show that some companies may start to pull back because of the government spending cuts.

The Institute for Supply Management reported Monday that U.S. manufacturing activity expanded more slowly in March than February, held back by weaker growth in production and new orders.

…read more
Source: FULL ARTICLE at Fox US News

Business, Finance, Occupation & Industry

Rise in Demand for Aircraft Pushes Factory Orders Up 3% in February

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By The Associated Press

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Matt Rourke/AP Peeps move through the manufacturing process, at the Just Born factory in Bethlehem, Pa., last month. The government reported Tuesday that factory orders increased 3 percent in February, the biggest gain in five months.

By MARTIN CRUTSINGER

WASHINGTON — Orders to U.S. factories rose sharply in February from January on a surge in volatile demand for commercial aircraft. The gain offset a drop in key orders that signal business investment.

The Commerce Department said Tuesday that factory orders increased 3 percent in February. That’s up from a 1 percent decline in January and the biggest gain in five months.

The increase was due mostly to a jump in orders for commercial aircraft. Those orders rose 95.1 percent. Orders for motor vehicles and parts also increased 1.4 percent.

Orders for all durable goods, which are products expected to last at least three years, jumped 5.6 percent. Orders for nondurable goods, such as processed food and clothing, rose 0.8 percent.

Despite the gains, the report showed that a key measure of business investment plans fell. That could mean that some companies were worried in February about steep federal spending cuts that started on March. 1.

Core capital goods, which include machinery and equipment orders, fell 3.2 percent. Demand for construction machinery, turbines and generators all fell sharply. Orders for computers and electronic products rose slightly.

Economists closely watch these orders because they signal business investment plans.

Still, the decline followed a 6.7 percent surge in January, the largest in nearly three years. Analysts said that when averaging the two months, business investment orders showed a solid increase for the January-March quarter. Many expect the gains to resume this spring, helped by a stronger job market that has kept consumers spending.

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Consumers stepped up spending in February after their income jumped. The gain occurred even after Social Security taxes increased in January, reducing take-home pay for most Americans.

Many economists raised their growth forecasts after the report was released. Some are predicting growth could increase to around 3 percent in the January-March quarter, up from 0.4 percent in the previous three months.

Other data show that some companies may start to pull back because of the government spending cuts.

The Institute for Supply Management reported Monday that U.S. manufacturing activity expanded more slowly in March than February, held back by weaker growth in production and new orders.

But factories did hire at the fastest pace in nine months, which was seen as an encouraging sing ahead of Friday’s report on employment in March.

The economy has added an average of 200,000 jobs a month from November through February, which helped lower the unemployment rate in February to a four-year low of 7.7 percent.

Economists predict a similar level of …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

RealPage® MPF Research Division Reports Moderate Growth of U.S. Apartment Rents in First Quarter 201

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By Business Wirevia The Motley Fool

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RealPage® MPF Research Division Reports Moderate Growth of U.S. Apartment Rents in First Quarter 2013

Local performances converge near the national norm, leaving relatively few especially strong or especially weak individual performers

CARROLLTON, Texas–(BUSINESS WIRE)– Effective rent growth for new leases in U.S. apartments registered at 2.6 percent as of first quarter, according to MPF Research, the industry-leading market intelligence division of RealPage, Inc. (NASDAQ: RP). Growth seen specifically in the January-March time frame came in at 0.5 percent. MPF Research analysts highlight the nation’s latest apartment rent growth statistics as well as other key performance indicators in a discussion found at www.realpage.com/MPFQ1-2013-Report.

The annual rent growth pace is continuing to cool from its recent high of 4.8 percent seen at the end of 2011. Top-end apartment communities, in particular, are seeing prices rise more modestly. Rents grew 1.9 percent during the past year in the stock built since 2000, compared to increases of 2.4 to 2.9 percent in older product segments. When rent growth peaked just over a year ago, prices were rising 4 to 5 percent across all apartment product niches.

Pricing decisions are beginning to be impacted meaningfully by the wave of new apartment supply that lies just ahead, according to the MPF Research analysis. “Many owners and operators at the best properties want to be sure that their apartments are completely full when deliveries of new units ramp up during the coming months,” said Greg Willett, MPF Research vice president. “In turn, smaller price increases at the top-of-the-market projects are leaving a little less room for big rent bumps in the older stock.”

While the pace of rent increases is slowing, pricing continues to set all-time highs. Pricing has jumped 10.8 percent from the recession-induced low seen in late 2009, and rents are up 4.8 percent from the pre-recession high posted in the middle of 2008.

Among large individual metros, the three Bay Area markets of San Francisco, Oakland and San Jose rank as the country’s rent growth leaders. During the year that ended in first quarter, effective prices for new leases jumped 6.3 percent in both San Francisco and Oakland, while the upturn proved nearly as strong at 5.6 percent in San Jose.

…read more
Source: FULL ARTICLE at DailyFinance
News, Politics, Government

US economy expands at 0.4 percent rate

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The U.S. economy grew at a slightly faster but still anemic rate at the end of last year. However, there is hope that growth accelerated in early 2013 despite higher taxes and cuts in government spending.

The Commerce Department says the economy grew at an annual rate of 0.4 percent in the October-December quarter. That was slightly better than the previous estimate of 0.1 percent growth. The revision reflected stronger business investment and export sales.

Analysts think the economy is growing at a rate of around 2.5 percent in the current January-March quarter, which ends this week.

Steady hiring has kept consumers spending this year. And a rebound in company stockpiling, further gains in housing and more business spending also likely drove faster growth in the first quarter.

…read more
Source: FULL ARTICLE at Fox US News

Business, Finance, Occupation & Industry

Demand for Durable Goods Rises Sharply in February

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By The Associated Press

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Mike Groll/AP Washing machines are for sale at Green’s, a furniture and appliance store, in Albany, N.Y. Overall orders for durable goods surged 5.7 percent in February from January, the government said Tuesday.

A surge in commercial aircraft demand pushed orders for U.S. long-lasting manufactured goods up sharply in February. The gain offset a steep drop in orders that signal company investment plans, although economists viewed the decline as a temporary setback.

The broader trend in business investment remains favorable, they noted, and should add to growth in the January-March quarter.

“The picture of business spending to start the year is fairly healthy,” said Dan Greenhaus, chief global strategist at BTIG

Overall orders for durable goods surged 5.7 percent in February from January, the Commerce Department said Tuesday. It was the biggest monthly increase in five months.

A rebound in volatile commercial aircraft orders drove the gain. Those orders rose 95.3 percent after a 24 percent drop in January.

Orders for motor vehicles and parts rose 3.8 percent, the best showing since July. Excluding the volatile transportation sector, orders were down 0.5 percent.

Durable goods are products expected to last at least three years. Orders can fluctuate sharply from month to month.

Economists pay closest attention to orders for so-called core capital goods, which strip out volatile aircraft and defense orders and provide a better indication of the trend in business investment.

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Those orders declined 2.7 percent in February from January. Demand weakened for machinery and communications equipment, but rose for computers. Still, the decline followed a 6.7 percent surge in January, which was the biggest one-month gain in nearly three years. Prior to February’s decline, the category had risen in three of the previous four months.

Greenhaus said that if the big swings in January and February were averaged, orders looked solid for the first two months of the year. He estimates that core orders risen at about a 5 percent rate compared with the final three months of last year.

Peter Newland, an economist at Barclays, said the strength shown in the durable goods report had prompted a slight revision in expectations for overall economic growth in the first quarter to a rate of 2.6 percent, up 0.1 percentage point from the previous estimate.

Many economists were expecting a decline in the core capital goods after January’s impressive gain. The broader trend has been favorable, even with uncertainty surrounding tax and spending policies. Core capital goods orders dipped in December but posted strong gains in November and October.

Nearly all Americans who draw a paycheck began paying higher Social Security taxes on Jan. 1 while income taxes rose for the highest earning workers. And $85 billion in automatic spending cuts started to take effect on March 1, reductions that will mean …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Federal Reserve Maintains Stance on Record-Low Interest Rates

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By The Associated Press

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Richard Drew/AP Federal Reserve Chairman Ben Bernanke as seen on a monitor on the floor of the New York Stock Exchange. The Fed said Wednesday it plans to keep interest rates at record lows for the foreseeable future.

By MARTIN CRUTSINGER

The Federal Reserve said Wednesday that the U.S. economy has strengthened after pausing late last year but still needs the Fed’s extraordinary support to help lower high unemployment.

In a statement after a two-day meeting, the Fed stood by its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it says it will continue buying $85 billion a month in bonds indefinitely to keep long-term borrowing costs down.

The unemployment rate fell to a four-year low of 7.7 percent in February, among many signs of a healthier economy.

The Fed notes in its statement that the job market has improved, consumer spending and business investment have increased and the housing market has strengthened.

Still, its latest economic forecast, also released Wednesday, maintains that unemployment won’t reach 6.5 percent until 2015.

The Fed also cautioned that government spending cuts and tax increases could slow the economy. It projects growth won’t exceed 2.8 percent this year, slightly lower than its December forecast of 3 percent.

A total of 13 Fed officials still believe the first rate hike will not occur until 2015, the same number as in December. One Fed official projects the first boost in the short-term lending rate will not occur until 2016.

The statement was approved on an 11-1 vote. Esther George, president of the Kansas City regional Fed bank, dissented for a second straight meeting. She reiterated her concerns that the Fed’s aggressive stimulus could heighten the risk of inflation and financial instability.

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The economy slowed to an annual growth rate of just 0.1 percent in the October-December quarter, a near-stall that was due mainly to temporary factors that have largely faded. Economists think growth has rebounded in the January-March quarter to an annual rate around 2 percent or more. The most recent data support that view.

Americans spent more at retailers in February despite higher Social Security taxes that shrank most workers’ paychecks. Manufacturing gained solidly in February. And employers have gone on a four-month hiring spree, adding an average of 205,000 jobs a month. In February, the unemployment rate, though still high, reached its lowest point since December 2008.

One reason for the Fed’s reluctance to reduce its stimulus is the history of the past three years. In each of the three, economic prospects looked promising as the year began. Yet in each case, the economy stumbled.

In 2010, U.S. growth was hurt by turmoil from Europe‘s debt crisis. In 2011, a spike in gas …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Fed Seen Maintaining Stance on Record Low Interest Rates

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By The Associated Press

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Richard Drew/AP Federal Reserve Chairman Ben Bernanke is seen on a monitor on the floor of the New York Stock Exchange on Tuesday, the same day Bernanke told Congress maintaining low interest is necessary in an economy is still burdened by high unemployment.

By MARTIN CRUTSINGER

WASHINGTON — The Federal Reserve on Wednesday is expected to maintain its resolve to keep borrowing costs at record lows despite growing signs that the economy is strengthening.

The Fed will end a two-day meeting with a policy statement and updated economic forecasts. Afterward, Chairman Ben Bernanke will hold a news conference. Most analysts think policymakers will acknowledge the economy’s improvements but leave the Fed’s stimulative policies unchanged.

Bernanke has said in recent weeks that the job market, in particular, has a long way to go to full health and still needs the Fed’s extraordinary support.

The unemployment rate, at 7.7 percent, remains well above the 5 percent to 6 percent range associated with a healthy economy. The Fed has said it plans to keep short-term rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it foresees unemployment staying above 6.5 percent until at least the end of 2015.

Economists think Bernanke will take note of the economy’s gains. But most foresee no pullback in the Fed’s strategy of keeping short-term rates at record lows and of buying $85 billion a month in Treasurys and mortgage bonds to keep long-term loan rates down.

“Even though the economy has improved, it has not improved enough to switch course,” says Diane Swonk, chief economist Mesirow Financial. “We don’t have unemployment low enough yet.”

The economy slowed to an annual growth rate of just 0.1 percent in the October-December quarter, a near-stall that was due mainly to temporary factors that have largely faded. Economists think growth has rebounded in the January-March quarter to an annual rate around 2 percent or more. The most recent data support that view.

Americans spent more at retailers in February despite higher Social Security taxes that shrank most workers’ paychecks. Manufacturing gained solidly in February. And employers have gone on a four-month hiring spree, adding an average of 205,000 jobs a month. In February, the unemployment rate, though still high, reached its lowest point in more than four years.

The brighter news has prompted speculation that the Fed might be preparing to dial back its easy-money policies. Such thinking has been fed by concerns voiced by a few Fed regional bank presidents about the low-rate policies.

Inflation Fears

These include fears that the Fed has pumped so much money into the economy that it could eventually ignite inflation, fuel speculative asset bubbles or destabilize markets once the Fed has to start raising rates or …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Strong auto output boosts US factory production

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A strong increase in auto output boosted U.S. factory production last month, the latest sign that manufacturing is helping drive economic growth after lagging for much of 2012.

Factory output rose a seasonally adjusted 0.8 percent in February from January, after falling 0.3 percent in the previous month, the Federal Reserve said Friday.

The biggest gain was in autos and auto parts, where production increased 3.6 percent after falling 4.9 percent in January. Car sales have risen steadily this year after reaching a five year high in 2012.

Overall industrial production, which includes mining and utilities, rose 0.7 percent in February. That is the most in three months. Utility output jumped 1.6 percent while mining output, which covers oil and gas drilling, fell 0.3 percent, the third straight decline.

The report adds to recent signs that manufacturing is picking up.

A closely watched index of U.S. manufacturing activity increased in February for the third straight month. Big increases in new orders and production pushed the Institute for Supply Management’s index to its highest level in 20 months.

Auto sales, meanwhile, reached their highest level in five years in 2012 and are still rising. New car and truck sales rose 4 percent in February from a year earlier to an annual pace of 15.4 million. That’s a big improvement from sales of only 10.4 million in 2009. It’s still short of the pre-recession peak of 17 million in 2005. Auto makers are expected to have boosted output last month to keep up with the sales.

Manufacturers also stepped up hiring last month, adding 14,000 jobs. The industry has added 39,000 in just the past three months.

Increasing factory output is contributing to an improved outlook for the economy this year. Americans are spending more, despite higher Social Security taxes and a sharp increase in gas prices. Retail sales rose in February at a healthy pace.

The job market is also gaining steam. Employers have added more than 200,000 jobs per month in the past four months, nearly double the average last spring. That’s pushed the unemployment rate down to a four-year low of 7.7 percent.

As a result many economists are more optimistic about growth in the January-March quarter. Joseph LaVorgna, …read more
Source: FULL ARTICLE at Fox US News