Quantitative easing again £80 billion will be injected in to countries banks

Quantitative easing again £80 billion will be injected in to countries banks

The latest figures for US industrial output showed an unexpected fall for the second time in three months as manufacturers and factories produced less goods.

The goods that the countries factories, mines and utilities produce fell by 0.1% less than was predicted. Manufacturing output fell by 0.4%.Economists had predicted growth of 0.1%. A fall in factory output indicates a slowdown of the world’s largest economy raising fresh fears that its recovery is stalling. Some economists are blaming the slowdown in the slump in demand coming from Europe and parts of Asia.

Industrial output fell by 0.1% in May, versus April's 1% gain and Wall Street forecasts of a small increase, according to official figures. Manufacturing output was down 0.4%, following a 0.7% rise in April, while mining increased by 0.9%, more than reversing April's 0.6% fall. Utilities were 0.8% ahead, against April's 5.3% jump.

“Manufacturing looks to have softened in May,” Dean Maki, New York-based chief U.S. economist at Barclays Plc, said before the report. “But manufacturers are still doing reasonably well, especially in comparison to other parts of the world, especially Europe. Part of the problem is that demand for growth in the U.S. is stronger than in Europe.”

Despite the gloomy manufacturing figures the greenback strengthened against the Euro. The single currency fell against most of its peers as the world prepares itself for the outcome of the weekends Greek elections. The election could be the turning point of the euro crisis and many national banks are preparing for the fallout. The Dollar has also strengthened slightly against the Pound after the Bank of England’s governor revealed that more quantitative easing would be introduced and that up to £80 billion will be injected into the countries banks.

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