BLS DAILY REPORT, WEDNESDAY, MAY 14, 1997
RELEASED TODAY: The Producer Price Index for Finished Goods declined
0.6 percent in April, seasonally adjusted. This followed decreases of
0.1 percent in March and 0.4 percent in February. Prices received by
domestic producers of intermediate goods fell 0.3 percent in April
after declining 0.6 percent in the previous month. The Crude Goods
Price Index dropped 0.9 percent in April following a 6.9 percent
decrease in March ....
The Labor Department has recommended that state unemployment insurance
agencies broaden the pool of eligible recipients to include part-time
workers and people who quit their jobs for "good cause." The
recommendation, sent as a draft letter, is getting a cold reception
from business groups and state agencies, many of which argue that the
proposed expansion of benefits would be too costly, would burden
corporations unfairly, and could deplete the state unemployment
compensation trust funds ....The letter did not directly address how
much the changes would cost employers, but the department says a
growing portion of the work force is now employed part time, with the
figure now up to 18 percent. The department is making the suggestions
-- which it has no power to enforce -- to help counter a sharp decline
in the percentage of workers who are receiving benefits, according to
the letter. In the 1950s, about 49 percent of workers who lost their
jobs were eligible for benefits, but now only about 35 percent are
....(Washington Post, page D9; Wall Street Journal, May 13, page
A24).
Retail sales fell 0.3 percent in April, marking the first decline in
five months and the biggest drop in 10 months, the Census Bureau
reports. Analysts had expected consumers to moderate their purchases
after several months of strong spending ....Much of last month's
decline was attributed to a drop in durable goods purchases,
especially autos ....(Daily Labor Report, page D-1)_____Consumers
spent less on cars, clothes, and other items in what could be a key
sign of slower economic growth ....(Washington Post, page D9; New York
Times, page D1)_____Consumers took a breather after shopping at a
breakneck pace earlier this year ....(Wall Street Journal, page A2).
The director of the Congressional Budget Office defended her agency's
revision of its revenue estimates during the budget negotiations in an
interview with the Washington Times (page A3). June O'Neill says
agency didn't change its forecast to clinch budget deal. "There was
information we thought was sufficiently important that we thought it
was worth imparting ....The timing may look odd, but it was strictly a
coincidence" ....
DUE OUT TOMORROW:
Consumer Price Index -- April 1997
Real Earnings: April 1997
