News Briefs - June 16
The Latest Headlines:
- New York Factory Index Rises
- Price of Crude Oil Rises on Gasoline Concerns
- Economists Optimistic on Rest of 2003, AP Says
- Daimler's Sprinter Van Tops Expectations
- Price of Crude Oil Rises on Gasoline Concerns
New York Factory Index Rises
Manufacturing in New York state expanded more than expected this month as orders and sales grew the most since January, the Federal Reserve Bank of New York said Monday.The regional bank's factory index rose to 26.8 in June, the highest since the gauge's inception in July 2001, from 10.6 the previous month. Readings greater than zero mean that a majority of manufacturers reported an improvement in business.
Manufacturing is one of trucking's largest and most important customers.
Economists had expected an Empire State survey reading of 10.1, according to Bloomberg. Transport Topics
Price of Crude Oil Rises on Gasoline Concerns
The price of crude oil rose Monday on expectations U.S. gasoline demand would climb in coming months while stockpiles remain below last year's levels, Bloomberg reported.About one-third of the commercial trucking industry uses gasoline. Gasoline reserves are 2.1% lower than a year ago, according to government statistics.
Brent crude for August delivery rose 24 cents to $26.63 a barrel in London on Monday. On the New York Mercantile Exchange, crude oil for July settlement rose to $30.88 on Friday. Transport Topics
Economists Optimistic on Rest of 2003, AP Says
The new tax cuts, a weakened dollar and falling interest rates are among the factors that have many economists now believing the economy will grow faster in the second half of the year, the Associated Press reported Monday.Tony Raimondo, president of Behlen Manufacturing Co. told AP that the company is seeing an improvement in orders, and National Association of Manufacturers President Jerry Jasinowski said other companies are reporting similar increases.
The $330 billion tax cut will give consumers more money starting in July, which one economist told AP could add as much as 1.5 percentage points to growth over the next year.
Economic growth will help lower the jobless rate, which would likely further add to consumer and business confidence, AP said. Transport Topics
Daimler's Sprinter Van Tops Expectations
DaimlerChrysler AG may sell as many as 9,000 Sprinter vans in the United States this year, about 20% more than planned, Bloomberg reported Friday.The company said the commerical van has been more popular with small business owners than expected. It also had received fleet orders with United Parcel Service, FedEx Corp. and DHL Worldwide Express, Bloomberg said.
Daimler said last month that increased sales of Sprinter vans this year make it more likely that it would agree to build a Sprinter plant in Georgia, Bloomberg said. However, a final decision has not been made. Transport Topics
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