Kokomo Tribune; Kokomo, Indiana

Breaking News

Business

June 25, 2014

US economy shrank at steep 2.9 percent rate in Q1

WASHINGTON (AP) — The U.S. economy shrank at a steep annual rate of 2.9 percent in the January-March quarter as a harsh winter contributed to the biggest contraction since the depths of the recession five years ago. But the setback is widely thought to be temporary, with growth rebounding solidly since spring.

The first-quarter contraction reported Wednesday by the government was even more severe than the 1 percent annual decline it had estimated a month ago. Much of the downward revision reflected an unexpectedly sharp drop in health care spending. Another factor was a bigger trade deficit than earlier estimated.

Though such a sharp economic decline would typically stoke fears of another recession, analysts see it as a short-lived result of winter storms that shut factories, disrupted shipping and kept Americans away from shopping malls and auto dealerships. Many expect growth to reach a robust annual rate of 3.5 percent or better this quarter.

"Despite the awful start to the year, the U.S. economy is nowhere close to a recession," said Sal Guatieri, senior economist at BMO Capital Markets.

Guatieri thinks growth is rebounding to a 3.8 percent annual rate in the current quarter and will average a solid 3 percent rate in the second half of the year.

Other analysts noted that several likely temporary factors slowed the economy last quarter — from businesses reducing their pace of restocking to companies paring their purchases of equipment. Also, a wider trade deficit cut 1.5 percentage points from growth. Housing construction slumped.

Those negative forces will likely turn positive this quarter, analysts said. The economy is getting a lift from an improving job market, which has added more than 200,000 jobs each month over the past four months.

"We had one-time hits from the weather, business inventories and trade in the first quarter," said Gus Faucher, senior economist at PNC Financial. "Things are looking much better for the rest of this year. Job gains are allowing households to increase their spending, with higher stock prices and home values also helping."

Text Only | Photo Reprints
Business
  • Apple Stock [Duplicate] Apple's stock bounces back to hit a new high SAN FRANCISCO (AP) — Apple's stock touched a new high Wednesday, reflecting investors' renewed faith in CEO Tim Cook's ability to outwit the competition and expand the technological hit factory built by the late Steve Jobs. The milestone represents

    August 20, 2014 1 Photo

  • Eriks MAIN Eriks Chevrolet celebrates after completing tornado recovery When Eriks Chevrolet vice presidents Karen Bellus and Tom Rethlake looked out across the property of their dealership directly after the Nov. 17 tornado, they saw a scene of absolute devastation. Over $1 million in damage was done to the facilities.

    August 13, 2014 2 Photos

  • EPA Weed Killer [Duplicate] Decision could boost use of popular weed killer WASHINGTON (AP) — Faced with tougher and more resistant weeds, corn and soybean farmers are anxiously awaiting government decisions on a new version of a popular herbicide — and on genetically modified seeds to grow crops designed to resist it. Criti

    August 13, 2014 1 Photo

  • Posh Salon earns Redken Elite status Posh Salon and Day Spa became just the fifth Indiana salon to achieve Redken Elite Salon status, it was announced this week. As part of the honor, the Posh styling team will travel in November to the Redken Exchange for a three-day, hands-on training

    August 10, 2014

  • Cures for ourills revealed Goober Goodenough is a long-time member of the Indiana General Assembly. You probably know the roadside signs he puts up before every election: “Goober is Goodenough for Indiana.”It has surprised me that Goober has not had a bigger role in the curren

    August 10, 2014

  • Cool summer sets expectations for a record harvest DES MOINES, Iowa (AP) — A mild summer across much of the nation's heartland has provided optimum growing conditions for the nation's corn and soybean crops. Pair that with high-yield seeds and other new farming technologies, and the U.S. is looking a

    August 8, 2014

  • Report: Indiana consumer rebounds from recession INDIANAPOLIS (AP) — A new report by the U.S. Commerce Department shows that consumer spending in Indiana has rebounded from the end of the Great Recession faster than the national average. The report released Thursday estimates state-by-state consume

    August 8, 2014

  • Bohemian Tattoo 02 Local tattoo artist Tim Boor endorsed by tattoo machine company Tim Boor was faced with extremely trying obstacles from the moment he was born. Severe development defects made his feet grow backwards and locked up against the back of his legs. Constant surgeries left him spending a large chunk of his childhood in

    August 7, 2014 4 Photos

  • Wealth Gap US Economy-6 [Duplicate] Can Africa keep its economic winning streak alive? WASHINGTON (AP) — They export BMWs and birdseed and plenty in between. Their middle class is growing fast enough to draw the likes of Marriott and Wal-Mart. China, Europe, Japan and the United States are vying to build roads and power plants there. N

    August 5, 2014 1 Photo

  • Wal-Mart's website to personalize shopping NEW YORK (AP) — Wal-Mart, in its latest bid to compete with nemesis Amazon.com, is rebuilding its website to further personalize the online shopping experience of each customer. Wal-Mart is rolling out a feature that will enable its website to show s

    August 4, 2014

Latest news
Featured Ads
Only on our website
AP Video
Obama: World Is Appalled by Murder of Journalist Israel, Militants Trade Fire After Talks Fail Pres. George W. Bush Takes Ice Bucket Challenge Pierce Brosnan's Call to Join the Expendables Changes Coming to No-Fly List Raw: IDF Footage Said to Show Airstrikes Police: Ferguson More Peaceful Raw: Aftermath of Airstrike in Gaza Raw: Thousands March on Pakistani Parliament Raw: World's Oldest Man Lives in Japan Fire Crews Tame Yosemite Fire Raw: Police Weapon Drawn Near Protesters, Media Raw: Explosions in Gaza As Airstrikes Resume Charter Schools Alter Post-Katrina Landscape Texas Gov. Perry: Indictment 'a Political Act' US Officials: Video Shows American's Beheading Video Shows Ferguson Cop Months Before Shooting Water Bottles Recalled for Safety Researcher Testing On-Field Concussion Scanners
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller