Lion of Judah: Latest Economic News

WASHINGTON — The nation's industrial output plunged in April, reflecting big cutbacks in autos and other manufacturing industries. The Federal Reserve reported Thursday that industrial production dropped 0.7% last month, more than double the decline that economists had expected. The weak economy has triggered four straight months of job losses, often a sign that a recession has started. However, the April drop was just one-fourth the size of job losses in March, giving hope that the current economic slowdown may not be as severe as the past two recessions.

WASHINGTON — Unemployment is rising faster among Hispanics than the rest of the U.S. population as the economy slows, a development that has ripple effects across the nation and into Latin America. The steep, continuing U.S. housing downturn has had a disproportionate impact on the Hispanic workforce, which is highly concentrated in construction. Because homeownership is also the major source of wealth for Latino families, falling house prices have made it harder for small-business owners to use their residences as collateral for needed loans to run or expand their firms. Further, the weakening job market, and state and federal crackdowns on illegal immigrants, have reduced the number of Hispanics wiring money to Latin America. Millions of families who depend on so-called remittance payments could be pushed into poverty if current trends continue, according to the Inter-American Development Bank.

WASHINGTON — Construction of new homes posted the biggest increase in more than two years in April and applications for new building permits turned up for the first time in five months, a rare bit of good news in what has been the worst downturn in housing in more than two decades. The Commerce Department reported Friday that housing construction rose 8.2% in April to a seasonally adjusted annual rate of 1.03 million units. A big jump in apartment construction offset further weakness in single-family homes. The gain represents a recovery after a steep slump in March building that had pushed activity to the slowest pace in 17 years. Permits — a gauge of future housing activity — gained 4.9% to 978,000 a year from a revised 932,000 in March. The surprising rebound in April may be temporary, given the headwinds builders are confronting at the present — from slumping sales to soaring home foreclosures.

WASHINGTON - By a veto-proof majority, the House passed an estimated $300 billion farm bill with increased subsidies for farmers and food stamps for the poor amid rising grocery prices. The measure was sprinkled with pet projects that lawmakers can take home to voters this election year. The 318-106 vote for the five-year bill gave supporters 28 more than they need to override a promised veto from President Bush, who has complained that the measure is too expensive and generous to farmers now enjoying record earnings. "A bloated, earmark-laden bill," his Agriculture secretary said after the vote.

JJ Commentary: Oh great. The economy is in trouble, the government is deep in debt, so let’s spend some more money to grease the electoral skids. Food stamps make sense, but “pet projects?”

SACRAMENTO (AP) — Gov. Arnold Schwarzenegger on Wednesday proposed borrowing on future lottery sales to eliminate a massive deficit in the state's spending plan and avoid unpopular cuts to the school system, state parks and prisons. The $144.3 billion budget plan for the fiscal year that begins in July is a byproduct of a slowing state economy. Tax revenue has been falling far short of what California needs to keep pace with spending, leading to a $15.2 billion shortfall. The Republican governor hopes to raise $15 billion over the next three years by selling bonds based on anticipated lottery revenue. He will use about $5.1 billion of that in the 2008-09 fiscal year to help erase the state's deficit.