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Newspaper
Odessa American
Location
Odessa, Texas, United States of America
Date
Mar 02, 2004
Page
3
Consumers raised personal spending 0.4 percent in January as disposable income climbed 0.8 percent helped by tax cuts and wage gains. ISM manufacturing index stood at 61.4 in February signaling expansion while construction spending fell 0.3 percent due to severe winter weather. Tax refunds to follow may sustain spending momentum.
In the United States consumer spending accounts for about two thirds of economic activity and shapes the recovery. While consumers have sustained growth, signs indicate businesses may boost capital spending to compensate for any moderation in consumer demand. The Fed is expected to keep rates at a 45 year low of 1 percent at the March 16 meeting.
About 18 000 National Guard soldiers from four major units have been put on alert for possible deployment to Iraq late this year or early 2005. The 42nd Infantry Division New York, 256th Infantry from Louisiana, 116th Cavalry from Idaho and Oregon, and 278th Armored Cavalry from Tennessee will train before possible mobilization, with tours potentially up to two years under presidential authority.
The Coast Guard terminated the hunt for 18 crew members missing after the Bow Mariner tanker carrying industrial ethanol exploded and sank off the Virginia coast. At least three other crewmen were killed. Six survivors were rescued from a life raft. the last was to be released from hospital. The cause remains under investigation.
Leslie Caldwell will leave her role as head of the Justice Department Enron Task Force after more than a year. Andrew Weissman will replace her as director after a brief transition, as the task force pursued 28 indictments tied to Enron's 2001 collapse and fraud allegations.
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