In a sweeping symbolic gesture, China lowered its growth target for this year, sending its clearest message yet that the world’s second-largest economy could no longer expand at its steroid-charged pace. Premier Wen Jiabao on Monday said China would cut its growth target for the first time in eight years, from 8 percent to 7.5 percent, to make the country’s economy more “sustainable and efficient.” “The announcement today means China will not simply chase after high-speed growth,” said Hu Xingdou, an economist at the Beijing Institute of Technology. “Instead, it will seek high-quality growth.”
Average gas price hits $3.94 per gallon in state
The AAA auto club reports the average price of a gallon of gasoline in Washington is $3.94. That’s up 8 cents in a week and 43 cents in a month. It’s 17 cents higher than the national average. Some metro prices from AAA’s Monday survey: Bellingham $4.10, Bremerton $3.97, Seattle-Bellevue-Everett $4.04, Tacoma $4.01, Olympia $4.03, Vancouver $4, Yakima $3.77, Tri-Cities $3.68, and Spokane $3.52.
Service firms grow at fastest pace in a year
U.S. service companies expanded in February at the fastest pace in a year, helped by a rise in new orders and job growth. The Institute for Supply Management said Monday that its index of non-manufacturing activity rose to 57.3, up from January’s 56.8 and the third straight increase. Any reading above 50 indicates expansion. Expansion in the service sector coincides with the lowest unemployment in three years, five straight months of solid to strong job growth and rising consumer confidence.
Factory orders fell in January
U.S. factory orders fell by 1 percent in January, the most in 15 months after businesses sharply reduced orders for machinery and equipment. A key reason for the decline in January was a drop in demand for so-called core capital goods, which are considered a proxy for business investment. Those orders fell 3.9 percent, the biggest decline in a year. Most economists noted that it followed a big increase in December, the final month businesses could take advantage of a one-year investment tax break.
Study: Newspapers must stress digital ads
The Pew Research Center says newspapers need to prioritize digital advertising sales if they expect to thrive. As advertisers shift spending from traditional print media to the Internet, newspapers are failing to make up for the decline in print advertising revenue with gains in online ads. Pew studied 38 newspapers and found that for every $7 in print ad revenue declines, the companies generated only about $1 in new digital advertising sales. Pew says even the smallest newspapers can boost online ad sales with a properly aligned sales force, training and commissions.
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