BLS DAILY REPORT, WEDNESDAY, JANUARY 3, 2001 RELEASED TODAY: In November, 217 metropolitan areas recorded unemployment rates below the U.S. average (3.8 percent, not seasonally adjusted), while 108 areas registered higher rates. Forty-one metropolitan areas had jobless rates below 2.0 percent, with 13 of these located in the Midwest, 13 in the South, and 12 in New England. Seven of the eight areas with rates above 10.0 percent were in the West. ... __Manufacturing activity declined in December for the fifth month in a row, reaching its lowest level since the economy emerged from recession in the spring of 1991, the National Association of Purchasing Management says. NAPM's closely watched business survey finds the purchasing managers' index fell 4 percentage points, to 43.7 percent, in December -- the lowest reading since April 1991 when the index dropped to 42.9 percent. A reading below 50 percent means the sector is contracting. December marks the fifth consecutive month manufacturing activity has not grown, although the overall economy continued to grow. ... The chair of NAPM's manufacturing business survey committee says, "For manufacturing, higher interest rates and higher energy prices in 2000 have contributed greatly toward a lackluster year for most of the sector. ... At 42.8 percent, the employment index fell below 50 percent for the third month in a row. The only industry indicating job growth in December was instruments and photographic equipment, the report said. ... (Daily Labor Report, page A-7). __There was fresh evidence that the manufacturing sector of the U.S. economy was slipping into recession and threatening to drag the rest of the economy down with it. ... "If this kind of news continues, it would give legitimacy to those who see a recession" this year, said the chief economist for Credit Suisse First Boston, who noted that the slowdown in production was hitting both high- and low-tech manufacturers. ... At the moment, the consensus of economic forecasters is that the economy will continue to slow, growing at an annual rate of about 2 percent through March, and then picking up steam. That's a dramatic slowdown from the 5.6 percent growth rates of last spring, but still short of a recession -- defined as two consecutive quarters of economic contraction. ... Most analysts expect Friday's jobs report to show a 0.1 percent increase in the unemployment rate with a modest 100,000 gain in new jobs. But should the report fall short of expectations, the Fed would come under considerable pressure to move aggressively to lower short-term interest rates. ... (Washington Post, page E1). __United States manufacturers received sharply fewer orders, made fewer products, and employed fewer workers in December than they did in the previous month, sending a closely watched index of manufacturing activity to its lowest level since 1991. ... Some economists are worried that the rapid slowdown is entering a vicious cycle, in which job losses create nervousness more broadly among consumers, leading to less spending and, eventually, more layoffs. ... (New York Times, page C1). __The overall economy may not be in recession, but the manufacturing sector's downward spiral accelerated last month. ... "What a way to start the year," said the chairman of the National Association of Purchasing Managers manufacturing survey committee. "A year ago we would have been talking about a shortage of people in the manufacturing sector, now we're talking about the possibility of layoffs, so there's been a dramatic change over the last 12 months." ... (Wall Street Journal, page A2). Perhaps shoppers did not notice as they scurried through supermarkets filling carts with potato chips and nachos for the holiday party, but their loads may have been a little lighter than in the past. In an effort to offset rising production costs, Frito-Lay, the world's largest maker of salty snack foods, has begun putting fewer chips in bags of Fritos, Chee-tos, and other well-known brands while keeping the price the same. ... Industry insiders have a name for the practice: the weight-out. It is a subtle way of earning more from everyday products without scaring off price-conscious shoppers, and it is quite legal as long as the package accurately describes what is inside. Makers of candy, coffee, and tuna fish have all tried weight-outs, with varying success. But the practice had been relatively scarce since the mid-1990s, largely because the cost of raw materials was low enough that manufacturers could afford to forgo price increases . Now, however, the cost of production is rising -- expenses like energy, packaging, even ink. So weight-outs have slowly begun to resurface as a means of maintaining corporate profits without enraging customers, who are often none the wiser. ... (nytimes.com, Jan. 2; NBC "Today" news show, Jan. 3 a.m.). President-elect Bush chooses Linda Chavez, president of the Center for Equal Opportunity, to serve as secretary of labor. The former staff director of the U.S. Commission on Civil Rights under President Reagan, Chavez is a conservative who is a leading advocate of race-neutral plans that promote education and outreach for the economically disadvantaged. ... (Daily Labor Report, page AA-1; Washington Post, page A1; New York Times, page A1). The German military began to open all jobs, including combat positions, to women today, as 244 female recruits entered local boot camps around the country. Their arrival marked the end of policies that had limited women to medical and musical units. ... (Washington Post, page A12). _______________________________________________ Crashlist website: http://website.lineone.net/~resource_base
