U.S. manufacturing dropped in July -- the 12th straight month of declines

greenspun.com : LUSENET : Unk's Wild Wild West : One Thread

http://www.abcnews.go.com/wire/US/ap20010801_1919.html

Link

WIRE: 08/01/2001 6:44 pm ET

U.S. manufacturing dropped in July the 12th straight month of declines

The Associated Press

NEW YORK (AP) Manufacturing activity dipped in July for the 12th consecutive month, confirming that it remains the economy's weakest link, a private trade group said Wednesday.

The report, along with a government report saying construction spending fell for the fourth straight month in June, fueled optimism among some economists that the Federal Reserve Bank will trim interest rates again when it meets later this month.

The Tempe, Ariz.-based National Association of Purchasing Management announced that its index of business activity fell to 43.6 in July from 44.7 the previous month. Analysts had been expecting an index of 44.5. An index above 50 signifies growth in manufacturing, while a figure below 50 shows contraction.

"This report, among others, gives (Federal Reserve Chairman) Alan Greenspan the ammunition to justify support for further reductions in interest rates," said Hugh A. Johnson, chief economist at First Albany Corp.

The NAPM report is closely watched because it is one of the first indications of how the manufacturing sector performed in July. The figures are based on a survey of purchasing executives who buy the raw materials for manufacturing at more than 350 industrial companies.

Norbert J. Ore, who oversees the NAPM report, said the survey indicates that the overall economy is continuing to grow, even though the manufacturing sector remains in recession.

"The manufacturing sector ... appears to continue to lack drivers that will stimulate recovery," said Ore.

Separately, the Commerce Department said Wednesday that spending for building projects fell by 0.7 percent in June to a seasonally adjusted annual rate of $861.6 billion. For June, the overall decline in construction activity reflected weakness in both private sector work and government projects.

Stocks were mixed, with the Dow Jones industrial average falling 12.80 points to 10,510.01. The tech-dominated Nasdaq composite index rose 41.25 to 2,068.38, and the Standard & Poor's 500 index gained 4.70 to 1,215.93.

On the Net:

http://www.napm.org

Copyright 2001 The Associated Press. All rights reserved.

-- (M@rket.trends), August 02, 2001

Answers

Attention Cherri!!! did you catch this, 12 straight months would put us in the Clinton administration, eh? But to hell with the truth as far as liberals are concerned, huh?

-- Gary (gcphelps@yahoo.com), August 02, 2001.

Moderation questions? read the FAQ