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The Slumping US economy limped
through the first quarter, growing by only 0.6
percent as housing and credit problems forced
people and businesses alike to hunker down. The
country's economic growth during January through
March was the same as in the final three months
of last year, the Commerce Department reported
last week. The statistic did not meet what
economists consider the classic definition of a
recession, which is a retraction of the economy.
This means that although the economy is stuck in
a rut, it is still managing to grow, even if
modestly.
Soaring prices for food, gas and
other everyday needs pushed consumer spending to
a faster pace than expected in March. The
Commerce Department reported last week that
consumer spending was up 0.4 percent, double the
increase that economists had forecast. However,
once inflation was removed, spending edged up a
much slower 0.1 percent. The March figures
represent the fourth straight lackluster
performance as consumers have been battered by
record gasoline prices, a deep slump in housing
and rising job layoffs.
The number of workers filing
initial claims for unemployment benefits rose a
bigger-than-expected 35,000 last week, and the
number of workers remaining on jobless benefits
climbed to a four-year high, the Labor
Department said on Thursday. Initial claims for
jobless benefits increased to a seasonally
adjusted 380,000 in the week ended April 26,
from a revised 345,000 the previous week.
Analysts polled by Reuters had expected claims
to rise to 360,000 from an initially reported
342,000.
U.S. factories saw demand for
their products rebound in March, following a
two-month slump. The Commerce Department
reported Friday that orders placed with U.S.
manufacturers rose 1.4 percent in March. That
was an improvement from the 0.9 percent dip
reported in February and the 2.3 percent drop in
January. The latest snapshot of manufacturing
activity was better than many economists were
forecasting. They were predicting a smaller, 0.2
percent rise in orders.
The major market indices were
higher this week. The Dow Jones Industrial Index
gained 1.29 percent. The S&P 500 Stock Index
rose 1.15 percent, while the Nasdaq Composite
advanced by 2.23 percent. Closed end country
funds closed the week in positive territory. Of
85 such funds tracked by Thomson Financial, 70
finished in positive territory, 14 finished in
negative territory while 1 remained unchanged.
The average fund jumped 1.99 percent
compared to a gain of 0.74 percent in market
price the previous week. The average discount of
market price from net asset value per share
narrowed to 7.31 percent from 8.14 percent the
week before.
Rounding out the top three
performers for the week was the Morgan Stanley
China A Share Fund which gained 11.20 percent
followed by Greater China Fund which gained
11.16 percent and Japan Smaller Cap Fund Inc
which advanced 7.18 percent.
Leading the bottom performers
for the week was Malaysia Fund which dropped
3.30 percent, followed by Swiss Helvetia Fund
which lost 2.25 percent and Taiwan Fund which
lost 2.23 percent.