> BUREAU OF LABOR STATISTICS, DAILY REPORT, TUESDAY, DECEMBER 4, 2001: > > As layoffs spread across the country, the portion of U.S. homeowners > falling into foreclosure reached its highest recorded level in the third > quarter, and the percentage slipping behind in their mortgage payments was > the highest in 10 years, the Mortgage Bankers Association said yesterday. > At the same time, economists said other economic figures showed that while > some Americans are suffering in the recession that began last spring, > others have been left relatively unscathed. Consumer spending rose by a > record amount in October, and motor vehicle sales remain strong in > November, according to reports released yesterday (Daniela Deane and John > M. Berry in The Washington Post, page A1). > > Consumer spending surged and construction unexpectedly rose in October, > while manufacturing improved last month, according to data released today. > The three reports signaled that the economy might be bouncing back from > the recession, the first since 1991. Spending increased a record 2.9 > percent, Commerce Department figures showed, which was more than analysts > had expected. Construction of houses, offices and government projects was > up 1.9 percent, the government said, contrary to expectations of a drop. > The National Association of Purchasing Management said that the factory > index rose to 44.5 in November from 39.8 in October, a sign that industry > may be reaching the end of a 16-month slump. Analysts had expected a > reading of 41.7 (Bloomberg News, The New York Times, page C2). > > Auto sales remained strong for much of November, but began to slow after > Thanksgiving when the Big Three automakers started to restrict their > interest-free financing offers. Still, the nation's auto industry remains > on pace for what should be at least the third or possibly the second > biggest sales year ever (The New York Times, page C4). > > A raft of economic reports issued Monday provided a somber view of the > battered U.S. economy's current health -- but stronger-than-expected > results in some categories also offered hope of future improvement. > Consumer spending rebounded sharply in October, erasing a rare downturn in > September, according to the Commerce Department. But the government data > also showed that personal income remained flat for the second consecutive > month in October, reflecting how layoffs and reduced work schedules have > damaged Americans' collective pocketbook. In the manufacturing sector, > activity declined for the 16th consecutive month in November, the National > Association of Purchasing Managers reported. The business group's index > strengthened last month to 44.5 percent, up from October's extremely weak > 39.8 percent and well above the 41.0 percent experts had anticipated > (Chicago Tribune; Reuters, > http://www.latimes.com/business/la-000096347dec04.story?coll=la%2Dheadline > s%2Dbusiness). > > The nation's manufacturing sector continued to contract in November for > the 16th straight month, although not as much as expected, raising the > prospect that it is finally poised for recovery (The Wall Street Journal, > page A4; Lisi de Bourbon, Associated Press, > http://www.nandotimes.com/business/story/185620p-1800244c.html). > > About 74 percent of roughly 240 human resource professionals surveyed by > the Society for Human Resource Management, Alexandria, Va. say they > offered severance to laid-off employees. About 62 percent say performance > was a consideration in determining layoffs ("Work Life" feature, The Wall > Street Journal, page A1). >
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