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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Markets End Historic Week On Sour Note

From Wire Reports

Economic reports helped spur financial markets to record heights at the beginning of the week, but couldn’t prevent a sharp pullback Friday when the Dow plunged more than 130 points.

On Wednesday, the Labor Department reported that consumer prices in June rose a paltry 0.1 percent. Through the first six months, the consumer price index held at an annual rate of 1.4 percent, the lowest rate of increase for this period since 1986.

In other reports this week:

The Federal Reserve said production at the nation’s factories, mines and utilities rose a moderate 0.3 percent in June following a 0.2 percent gain in May, a signal that manufacturers are stepping up their pace.

The Commerce Department said business inventories rose a mere 0.2 percent, good news for economy watchers concerned about unwanted inventory buildup in light of the slowdown in second-quarter consumer spending.

Housing starts rebounded in June as favorable mortgage rates and job and income growth renewed builders’ confidence in consumer demand. Builders boosted construction of new homes and apartments by 4.8 percent in June, to a seasonally adjusted annual rate of 1.45 million, the Commerce Department reported Thursday.