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US Economy Shows Signs of Strength in February 1999

Strategic Insights

— 1 min read

The US economy demonstrated a surge in factory orders and decline in jobless claims in February 1999, sparking optimism among economists. According to the Commerce Department, factory orders for manufactured goods rose 2.3 percent in December 1998, reaching an all-time high. Meanwhile, new claims for unemployment benefits fell to their lowest level since mid-December, contradicting forecasts of a rise. Colgate-Palmolive reported record fourth-quarter and full-year earnings, driven by a 13 percent increase in net income.

Key Takeaways:

  • Factory orders for manufactured goods rose 2.3 percent in December 1998, reaching an all-time high, with the largest increase since November 1997.
  • New claims for unemployment benefits fell to 292,000, the lowest level since mid-December, despite forecasts of a 3,000 increase.
  • Colgate-Palmolive reported record fourth-quarter and full-year earnings, with a 13 percent increase in net income to $234.2 million.
  • Colgate-Palmolive's sales fell 1 percent to $2.3 billion in the fourth quarter due to foreign exchange translation, but would have been up 3 percent in constant currencies.
  • MCI WorldCom introduced MCI WorldCom Internet, a consumer Internet service offering local access via MCI WorldCom's UUNET Internet network, with a start page and 20 "Web Centers" for news and information.

Statistics:

  • Factory orders for manufactured goods rose 2.3 percent in December 1998, the largest increase since November 1997.
  • New claims for unemployment benefits fell to 292,000, the lowest level since mid-December.
  • Colgate-Palmolive's fourth-quarter net income rose 13 percent to $234.2 million, or 73 cents per diluted share per year.
  • Colgate-Palmolive's full-year net income rose 15 percent to $848.6 million, or $2.81 per share per year.
  • MCI WorldCom Internet will be available to MCI WorldCom subscribers for $16.95 per month for the first 150 hours.
  • The four-week moving average of new claims fell 16,000 to a seasonally adjusted 317,250.

Sources:

  • Commerce Department
  • Labor Department
  • Colgate-Palmolive
  • MCI WorldCom
  • United Press International

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