Stocks Rise On More Signs of Economic Growth
NEW YORK (AP) - Stocks are edging higher on Wall Street following more signs that the U.S. economic recovery is advancing, albeit at a slow pace.
The Dow Jones industrial average rose 15 points to 13,188 a half-hour after the opening bell Wednesday. The broader S&P 500 index rose two points to 1,406, while Nasdaq rose nine points to 3,025.
U.S. industrial production increased last month as factories made more cars, computers and airplanes, according to the Federal Reserve.
It was a sign that manufacturing is recovering after a weak spring. Also, consumer prices were unchanged in July from June, as a small drop in energy costs offset slightly higher food prices. The consumer price index hasn’t changed since March, which means that inflation is in check.
Lower inflation gives the Federal Reserve more leeway to launch new programs intended to rekindle the economy. The Fed signaled at a meeting in late July that it is ready to act if growth and hiring stays weak.
Recent signs point to some economic improvement in July. Employers added the most jobs in five months, while consumers increased their retail spending after three months of declines.
Though they were better, the economic data showed a very weak recovery and that the U.S. economy is just trudging along.