> BUREAU OF LABOR STATISTICS DAILY REPORT, TUESDAY, JULY 17, 2001:
>
> Consumer prices for goods and services likely grew by just 0.1 percent in
> June. Excluding food and energy, core prices probably increased 0.2
> percent. ...Housing starts in June likely fell to an annual rate of 1.61
> million from 1.62 million in May. ....The May trade deficit probably
> narrowed to $32 billion from $32.2 billion in April. The weaker economy
> is causing a drop in demand for foreign goods, despite the strong dollar.
> ....The Conference Board's composite index of leading indicators likely
> advanced 0.2 percent in June. (Business Week, July 23, page 94).
>
> Hospitals across the country are struggling with an acute shortages of
> nurses, but the hospitals' problem is a big opportunity for a handful of
> nurse staffing companies, says The New York Times (page C1). These
> companies recruit thousands of traveling nurses who typically agree to
> work in hospitals on 13-week contracts. Thousands of other nurses take
> temporary work for a daily rate, often through a local mom-and-pop
> employment agency. Hospitals paid $7.2 billion last year for temporary
> employees, mainly nurses, according to The Staffing Industry Report, and
> industry newsletter. The traveling nurse companies charge the hospitals
> $40 to $50 an hour, and more in high-cost cities. The companies pay for
> apartments and other amenities, including liability insurance and health
> benefits for nurses who work a minimum number of weeks. They keep
> extensive databases on the certificates and credentials held by the
> skilled nurses who are in the greatest demand. Hourly pay for the nurses
> average between $20 and $30 an hour. They can often pick their region,
> for example, Florida, Arizona and California in cold weather.
>
> A federal panel backed by President Bush has recommended that the
> government require automakers to improve the fuel efficiency of new
> vehicles. The draft report does not recommend specific improvements in
> miles per gallon. But it says the fuel economy of sport utility vehicles
> and pickup trucks could be raised as much as 8 to 11 miles a gallon in 6
> to 10 years with the savings on gas over the 14-year life of the vehicle
> offsetting the extra cost. (The New York Times, page C1) (Wall Street
> Journal, page A20).
>
> Business inventories were unchanged in May, as sales rose more than in any
> month since March of last year, the government reported -- a sign a pickup
> in the economy may lift production months from now. Inventories at
> factories, wholesalers and retailers, which fell 0.2 percent in April,
> have not increase the last 4 months, according to the Commerce Department.
> Business sales surged 1.1 percent in May, after falling 0.5 percent, the
> department said. (Bloomberg News, The New York Times, page C10)
> http://www.boston.com/dailyglobe2/198/business/Inventories_flat_sales_surg
> e_in_May+.shtml).
>
> Business inventories were flat in May, despite the largest monthly sales
> increase in over a year, suggesting companies are working through their
> excess stockpiles. The figures are roughly in line with analysts'
> expectations, and should provide some comfort to Federal Reserve policy
> makers (Dow Jones Newswires, The Wall Street Journal, page A2. The
> Journal's page 1 graph is of business inventories and sales, 1996 to the
> present).
>
> Manufacturing activity plummeted in June, the ninth straight monthly
> decline, providing fresh evidence that the battered industrial sector
> continues to bear the brunt of the yearlong economic slowdown. The
> Federal Reserve reported that industrial production at the nation's
> factories, mines and utilities declined by 0.7 percent last month,
> following a 0.5 percent drop in May. June's decline was the sharpest
> since industrial output fell by 0.9 percent in January. The latest
> snapshot of the industrial sector's performance was weaker than most
> analysts were expecting. They were predicting manufacturing activity
> would fall by 0.5 percent in June (Jeannine Aversa, Associated Press,
> http://www.nypost.com/apstories/business/V3164.htm;
> http://www.chicagotribune.com/business/businessnews/article/0,2669,ART-529
> 98,FF.html; http://www0.mercurycenter.com/breaking/headline2/072304.htm).
>
> DUE OUT TOMORROW: "Consumer Price Index -- June 2001" and "Real Earnings
> -- June 2001".
>
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