[PEN-L:1169] BLS Daily Report

[Richardson_D]

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BLS DAILY REPORT, MONDAY, AUGUST 17, 1998:

Producer prices for finished goods moved up 0.2 percent in July, after
declining 0.1 percent in June, according to BLS.  Analysts say the rise
in producer prices is not a sign that inflation is likely to accelerate,
because special factors caused the increase.  The heat wave through much
of the South and Southwest helped push up energy consumption in July,
economists say.  While producer prices have fallen over the last 12
months, the rate of decline has been diminishing....  (Daily Labor
Force, page D-1)_____The producer price report raised no inflation
warning flags, analysts said.  The core producer price rate, which
strips out volatile foods and energy costs, rose .0.1 percent in July,
following an increase of  0.2 percent in June....  (New York Times, Aug.
16, page B3).

Spurred by a tight labor market, an increasing number of Fortune 1000
companies are using hiring bonuses to attract talented employees - "a
major shift in compensation policy," according to a soon-to-be-released
survey conducted by Buck Consultants....  (Daily Labor Report, page
A-6).

Industrial production declined 0.6 percent in July on the heels of a 1.1
percent drop in June, driven down by the United Auto Workers' strike
against General Motors, the Federal Reserve reports....  (Daily Labor
Report, page D-10).

Industrial production declined in July for the second consecutive month
as manufacturers struggled to overcome sluggish Asian demand and the
General Motors strikes cut auto and truck output by 20 percent.
Inflation remained tame at the producer level.  Analysts said the
decline in total production would probably be short lived....  (New York
Times, Aug. 16, page B3)_____Output at U.S. factories dropped last
month, while wholesale prices rose only slightly.  The reports
reinforced the widely held view that economic growth is moderating while
inflation remains tame....  (Wall Street Journal, page A2).

Held down by a strike-related drop in auto dealers' stocks on hand, U.S.
business posted a slight 0.1 percent rise in inventories during June,
according to Commerce Department figures....  (Daily Labor Report, page
A-4).

One out of eight workers who lost their jobs in the past four months did
so because of a corporate merger, job placement firm Challenger, Gray &
Christmas Inc. reported.  Only one in nine job cuts was merger-related
in the year-earlier period, it said.  Mergers accounted for 13.4 percent
of 182,077 job cuts announced from April to July, according to the
international outplacement firm.  That compared with 11.2 percent of the
99,658 job cuts a year earlier....  (Washington Post, Aug. 16, page H3).


Yesterday's mechanic has become today's high-tech worker, says The
Washington Post (Aug. 16, page H3).  With more emissions regulations and
with most car powertrain functions now relying on computers, the auto
repair industry has undergone a major change....  "Mechanics" are a
thing of the past. They are now auto technicians, who need to be well
versed in electronics and computers to work with today's cars, which
include some of the same high-tech devices as in the space shuttle. .And
not only do many mechanics now hold degrees as auto technicians, they
are earning salaries averaging around $45,000 a year, with many earning
up to $65,000.  The job description and overall perception of a mechanic
is evolving from a hands-on blue-collar job that requires basic auto
repair skills, to something more like an electrical engineer....  

The economy's core strengths remain, but the carefree days seem to be
over.  Forecasters are counting on low inflation, falling interest rates
and confident consumers to keep growth going in the year's second half.
They are taking in stride last month's news about a slide in everything
from industrial production to retail sales - all made worse by the
General Motors strike.  In fact, a slowdown, they say, is just what the
doctor ordered....  (New York Times, Aug. 15, page A1)_____The U.S.
economy, despite the turmoil in Asia, still boasts strong labor
productivity, controlled inflation, low interest rates, and efficient
companies.  Asia's problems have eaten into exports and generated
increased competition from imports, thereby reducing overall growth....
(Wall Street Journal, page A2).

DUE OUT TOMORROW:
   Consumer Price Index -- July 1998
   Real Earnings:  July 1998


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