Mixed Readings on Economic Recovery

Manufacturing News, Source : TheManufacturer.com
Published : 23 Jul 2002 16:15

Despite June’s stable reading of 112.4 for the index of leading indicators, the most relied upon gauge of economic stability, the nation’s unemployment rating is at its lowest level in 17 months, with the number of first-time filers for unemployment claims in the thousands each week.

As a result, conflicting opinions on the actual state of the economy have arisen.

Some experts believe we are stuck in a holding pattern. With only 60,000 jobs created in the last two months, the US will have a tough time offsetting the 1.8 million jobs lost during last year’s recession. Sung Won Sohn, executive vice president for Wells Fargo & Co., said that the economy is stable, but not improving rapidly. He stated that at least 250,000 jobs need to be created each month for any real change to occur.

Others remain hopeful that the stability maintained by the index will keep the nation afloat, and they place the bulk of the blame not at unemployment, but in the direction of corporate scandals and weakened consumer confidence. “Indicators of the real economy, such as unemployment and manufacturing hours worked, are improving,” said Jerry Jasinowski, president of the National Association of Manufacturers. “However, this expansion is being countered by a falling stock market that has amplified investor anxiety and dampened consumer expectations.”

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