U.S.: Report Says Recession a Reality for Factoriesgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread |
Headline: IN BRIEF / THE ECONOMYReport Says Recession a Reality for Factories
Source: Los Angeles Times, 30 August 2001
URL: http://www.latimes.com/business/careers/work/la-000070059aug30.story?coll=la%2Dheadlines%2Dbusiness%2Dcareers
After hovering around 18.5 million jobs for the last five years, the manufacturing sector has shed 837,000 jobs--or 4.5% of its work force--since July 2000, marking a full-blown recession for the nation's factories, according to the National Assn. of Manufacturers' annual Labor Day Report.
Though output and employment have fallen across virtually all manufacturing industries, the steepest drop has been in durable goods--big-ticket items such as appliances, machinery and vehicles. Output has plunged by 5.5% since last September after increasing by 11% during the previous 12 months. That dramatic reversal caused durable-goods employment to dive by 561,000 jobs, representing two-thirds of the total reduction in all factory jobs.
The NAM report blames several factors for helping exacerbate the slump, including a spike in energy prices, high interest rates in the early part of 2000 and a strong dollar that has crimped demand for exports.
-- Andre Weltman (aweltman@state.pa.us), August 30, 2001
Durable goods is another excellent indicator (in addition to paperboard packaging). It's the big ticket items that drop in sales first (discretionary spending), before other areas of spending are affected.
-- JackW (jpayne@webtv.net), August 30, 2001.