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OMB Staff Gets The Axe

OMB Staff Gets The Axe OMB Staff Gets The Axe

According to White House press secretary Jay Carney on Monday, due to the across-the-board budget cuts known as the sequester, nearly 500 staffers at the White House Office of Management and Budget office have been given furlough notices. Carney would not give information about other agencies but said, “As the impact of the sequester progresses, furlough and pay cuts remain possibilities for additional White House employees.” Between April 21 and September 7, 480 employees at the OMB, part of the executive office of the president, would need to take 10 days off. On April 10, President Barack Obama will release his next budget to allow time for OMB staff to complete that document before taking forced, unpaid days off.

Chinese regulators are considering a crack-down on Apple Inc. (AAPL) amid complaints that its customer service policies are less favorable in China than other markets. CEO Tim Cook on Monday promised to improve Apple’s repair policy for iPhone 4 and 4S models as well as, improve supervision and training of authorized service providers in China. The Asian region has accounted for 12.5% of total revenue for Apple during fiscal first quarter, up from 8.8% from same period 2011. Strong growth in the Asian region contributed to the decision by Apple, in its most recent earnings report to give greater geographic detail on its operating results. During Apple's first fiscal quarter that ended December 29, sales surged 67% for the Asian region including China, Hong Kong and Taiwan. Greater China was Apple’s fastest growing geography.

Markit's U.S. manufacturing purchasing managers index (PMI) for Q1 2013 released Monday morning came in at 54.6 in March, down from flash reading of 54.9 but above February's 54.3.

According to the U.S. Commerce Department, during February, construction spending grew 1.2% to a seasonally adjusted annual rate of $885.1 billion and was 7.9% stronger than February 2012. Residential construction spending grew 2% on the month.

Institute for Supply Management (ISM) index fell to 51.3% in March from 54.2% in February, per data released on Monday. The pace of expansion in the U.S. manufacturing sector slowed sharply in March to the lowest level since December. ISM employment gauge rose to 54.2% from 52.6%. New-orders gauge from ISM fell sharply lower to 51.3% from 57.8%. ISM production index tumbled to 52.2% from 57.6%.
 

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April 1, 2013


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