> BLS DAILY REPORT, MONDAY, APRIL 30, 2001:
>
> U.S. economic growth rose at a better-than-expected 2.0 percent annual
> rate in the first quarter of 2001, as consumer spending remained robust
> and net exports rose for the first time since 1998, the Commerce
> Department reported April 27. Personal consumption expenditures rose 3.1
> percent in the first quarter and were the largest contributor to the
> overall 2.0 percent rise in GDP, the Commerce Department said. Economists
> had expected the real gross domestic product to grow at only 1.0 percent
> in the first quarter because sharp inventory liquidation by businesses had
> reduced the volume of new orders for goods. "Now that inventories in the
> auto sector and many other areas have been worked off, production is
> ramping up again. I'd say the odds of seeing the economy slip into
> negative growth after this turnaround in inventories are very low," says
> the chief economist at Lehman Brothers in New York. As final sales of
> domestic products rose 4.6 percent in the first quarter, prices for gross
> domestic purchases rose 3.2 percent. Core prices, which exclude the
> volatile food and energy sectors, rose 2.4 percent in the first quarter,
> creating concern among some analysts that inflationary pressures are
> growing (Daily Labor Report, page D-1).
>
> Americans bought so many cars, refrigerators and other goods that the U.S.
> economy grew faster than expected in the first 3 months of the year, when
> some experts thought the nation's 10-year expansion was coming to an end.
> The economy grew at a 2 percent annual rate in the first quarter, the
> Commerce Department reported, double the pace of late last year and about
> twice as fast as most forecasters had predicted. Analysts said the gain,
> largely driven by rising consumer spending, indicated the economy was not
> in as bad shape as it had appeared during the winter when stocks were
> falling, layoff announcements were multiplying and some economists and
> politicians were warning of a possible recession. Meanwhile, Americans
> were buying. The most important factor in first quarter growth was a
> solid gain in consumer spending. Spending for housing and business
> structures both rose, as did outlays by both federal and state and local
> governments. Another positive note in the report was a significant drop
> in the U.S. trade deficit. The better trade results added 1.38 percentage
> points to the overall increase in the GDP, which measures the amount of
> goods and services produced in the United States after being adjusted for
> inflation (John M. Berry in The Washington Post, April 28, page A1).
>
> Consumers spent modestly in March, but cut back sharply on purchases of
> big ticket items such as cars. Incomes rose more quickly than spending.
> The Commerce Department reported today that Americans" spending grew by
> 0.3 percent last month, slightly stronger than the 0.2 percent rise many
> analysts were predicting. Incomes, which include wages, interest and
> government benefits, went up even more quickly, rising 0.5 percent last
> month, matching many analysts' expectations. The spending and inflation
> figures aren't adjusted for inflation. One reason consumer spending
> hasn't collapsed in the face of a highly volatile stock market and higher
> energy prices is that most Americans still have jobs, even with the
> economic slowdown (The Associated Press, Los Angeles Times
> http://wwwlatimes.com/wires/20010430/ap_spend010430.htm).
>
> The economy showed surprising resilience in the first 3 months of this
> year, growing at a 2 percent annual rate and extending the longest
> American expansion on record to a full 10 years, the government reported
> yesterday. Even as the stock market fell and unemployment rose, consumers
> continued to spend more than they earned, increasing their debt levels to
> buy new homes, cars, and other items. Their shopping slowed as the winter
> went on, but the solid increase was enough to overcome a sharp decline in
> companies' investments in new equipment. Despite widespread concerns that
> a recession could be looming, overall economic activity accelerated in the
> first quarter of 2001. Still, after growing a mere 1 percent rate in the
> fourth quarter of 2000, the economy has now posted its worst 6 months
> since 1995, and companies continue to cut jobs, threatening future growth,
> analysts said (The New York Times, April 28, page A1).
>
> The unexpected rebound in economic growth this winter means the U.S. may
> have avoided a conventional recession, but significant risks remain for a
> New Economy style "growth recession". In a real downturn, economic output
> falls for a period of time. Despite all the dire proclamations during the
> past few months that it might be happening, the Commerce Department
> reported Friday that gross domestic product rose during the first quarter
> by a 2 percent annual pace. That's twice as fast as the experts had
> predicted, a decent acceleration from the 1 percent level of the fourth
> quarter of 2000 and a pace that economists once considered healthy (The
> Wall Street Journal, page A2).
>
> The Wall Street Journal's feature "Tracking the Economy" (page A4) shows
> the unemployment rate for April, to be released Friday, as increasing to
> 4.4 percent according to the Thomson Global Forecast, in comparison to the
> 4.3 percent figure in March. Average hourly earnings for April, also to
> be released Friday, is expected to go up 0.3 percent in contrast to the
> 0.4 actual rise the previous month. The work week in April is projected
> to show 34.2 hours, a .1 percent increase over the previous month. That
> figure, too, is to be released Friday.
>
> Women in the legal profession continue to earn less than their male
> counterparts and face bias and harassment on the job, according to an
> American Bar Association study. "Women in the legal profession remain
> underrepresented in positions of greatest status, influence, and economic
> reward," "The Unfinished Agenda, Women and the Legal Profession"
> concludes. Although women constituted a majority of entering law students
> for the first time last year and now account for nearly a third of the
> country's lawyers, the ABA said that women continue to face inequality in
> the workforce. Women account for only about 15 percent of federal judges
> and law firm partners, 10 percent of law school deans and general
> counsels, and 5 percent of managing partners at large firms. "On average,
> female lawyers earn about $20,000 less than male lawyers and significant
> disparities persist even between those with similar qualifications,
> experience, and positions," said the report (Daily Labor Report, page
> A-1).
>
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