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Briefly

Survey: Factory output down

WASHINGTON (AP) — American factories slowed for the third consecutive month in May as they continued to sustain economic damage from the coronavirus pandemic.

The Institute for Supply Management, an association of purchasing managers, said Monday that its manufacturing index came in at 43.1 last month after registering 41.5 in April. Anything below 50 signals that U.S. manufacturers are in retreat. New orders, production, hiring and new export orders all fell in May but at a slower pace than they did in April.

The pandemic and the lockdowns, and travel restrictions meant to combat it, have brought economic activity to a near-standstill. U.S. gross domestic product fell at a 5% annual rate from January-March and is expected to drop at a record-busting 40% rate from April-June.

The results were about what economists expected.

Eleven of 18 manufacturing industries contracted last month, led by printing, primary metals and transportation equipment makers. Six reported growth, led my mineral companies and furniture makers.

The Commerce Department said last week that orders for big-ticket manufactured goods dropped 17.2% in April after falling 16.6% in March.

Lufthansa board OKs $10B bailout

BERLIN (AP) — The supervisory board of Lufthansa has given its blessing to a 9 billion-euro ($10 billion) government bailout plan thrashed out between the airline, the German government and the European Union.

In a statement Monday, the German carrier quoted Lufthansa Chairman Karl-Ludwig Kley saying it had been “a very difficult decision.”

“We recommend that our shareholders follow this path, even if it requires them to make substantial contributions to stabilizing their company,” said Kley. “It must be clearly stated, however, that Lufthansa is facing a very difficult road ahead.”

Lufthansa, which has been hard-hit by the downturn in travel during the coronavirus pandemic, will be required to relinquish some of its slots in Frankfurt and Munich to competitors.

A German government stabilization fund will receive a 20% stake in the airline.

Environmental campaigners have criticized the government, saying it had not pressed for tougher emissions reduction targets as part of the bailout plan.

Lufthansa’s current shareholders and the European Commission need to provide final approval for the plan.

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