BLS Daily Report

[Richardson_D <Richardson_D@xxxxxxx>]

> BUREAU OF LABOR STATISTICS, DAILY REPORT, JANUARY 11, 2002:
>
> RELEASED TODAY:  The Producer Price Index for Finished Goods declined 0.7
> percent in December, seasonally adjusted, the Bureau of Labor Statistics
> reports.  The December decline follows decreases of 0.6 percent in
> November and 1.6 percent in October.  Prices received by producers of
> intermediate goods decreased 0.9 percent, following a 0.5 percent decline
> in the prior month.  The crude goods index dropped 9.5 percent, after
> posting a 7.3 percent rise in November.
>
> Wholesale prices, led by a sharp drop in energy costs, fell 0.7 percent in
> December, helping to make 2001 the tamest year for inflation at the
> producer level since 1986.  The Labor Department's producer price index,
> which measures price pressures before they reach consumers, fell 1.8
> percent for all of last year, the biggest annual decline since 1986, when
> wholesale prices dropped by 2.3 percent, the government reported today.
> That marked a big improvement from the 3.6 percent increase in wholesale
> prices registered in 2000. One of the few benefits of the slowed economy
> is low inflation.  Companies, facing sagging demand, have heavily
> discounted merchandise and offered free financing and other incentives to
> lure customers (Jeannine Aversa, Associated Press,
> http://www.nypost.com/apstories/business/V0716.htm).
>
> New claims for unemployment insurance for the week ending January 5
> decreased by 56,000 to 395,000, down from the previous week's revised
> figures of 451,000, the Labor Department's Employment and Training
> Administration reports.  The 4-week moving average fell 250 to 410,500
> from the previous week's revised average of 410,750 (Daily Labor Report,
> page D-1).
>
> Two Princeton University economists conclude that labor strife at
> Bridgestone/Firestone plants, particularly in Decatur, Ill., contributed
> significantly to the production of defective tires in the 1990s.  "Using
> several independent data sources, we find that labor strife in the Decatur
> plant closely coincided with lower product quality," write Princeton
> economists Alan Krueger and Alexandre Mas.  "If antagonistic labor
> relations were responsible for many of the defects, even indirectly, this
> episode would serve as a useful reminder that a good relationship between
> labor and management can be in the company's interest," the study says.
> Both the company and the union strongly disputed the study's conclusions
> (Daily Labor Report, page AA-1).
>
> After suffering through one of the worst downturns in decades, the
> nation's manufacturers may be starting to recover, writes Ron Scherer,
> Christian Science Monitor
> (http://www.csmonitor.com/2002/0111/p1s1-usec.html). The improvement,
> economists stress, is nascent, uneven, and even ambiguous.  But signs are
> growing that manufacturers-- which helped lead the nation into recession
> -- are finally seeing order books improve.  Demand for washing machines,
> airplanes, and other "durable goods" is rising.  And a recent survey by
> the Institute for Supply Management showed some improvement among
> manufacturing companies.  If the trend continues, it could help pull the
> nation out of recession by spring.  Yesterday, in fact, the 52 economists
> surveyed by Blue Chip Economic Forecasts predicted the first official
> recession in 10 years would end by March.
>
> A study released today predicts the September 11 terrorist attacks will
> wipe out more than 1.6 million jobs in 2002 alone and reverberate through
> the U.S. economy for years to come.  The losses will hit cities with
> exposure to the tourism and airline sectors hardest, but will also spread
> across a wide range of industries -- from dining to financial services,
> according to the Milken Institute, a Santa Monica-based economic
> think-tank.  New York City will lose nearly 150,000 jobs in 2002, followed
> by Los Angeles with 69,000 jobs, and Chicago with at least 68,000 jobs.
> Already, 248,000 jobs have been lost nationwide because of the attacks,
> the institute says.  "The attacks will be impacting economic activity as
> late as 2004," says Ross DeVol, director of regional studies at the Milken
> Institute and principal author of the report. "The good news is that many
> of those jobs should come back."  Las Vegas will prove the single most
> vulnerable metropolitan area, likely to see nearly 5 percent fewer jobs
> this year because of the attacks (Simon Avery, Associated Press,
> http://www.nandotimes.com/nation/story/216540p-2089522c.html).
>

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