Friday, December 01, 2006
The recent numbers on the manufacturing sector show that there has been a decrease in the job market for the first time in four years that the nation has seen this which is calling for a big concern. The manufacturing sector shows that there has been a contraction in the market because by definition any reading under fifty means that the sector has shrunk. In the recent economic reports economic development has plummeted in October and home building has continued on its record setting seventh month in a row. With the stock and dollar value falling the Federal Reserve will either have to keep interest rates level or cut short term rates sooner than economists hade expected. Although last month the sevice sector had outperformed the manufacturing sector the pedictions that economists see is that will not be the long run trend. The rate at which the economic development in which the general public is made better off will see a loss of over 300,000 jobs in the housing related industry on top of the 100,000 jobs already lost in the housing since March. The chair of the ISM's survey committee reports that the reson for the contraction in manufaturing after being above the bench mark of fifty for fourty months is the response to the Federal Reserve raising interest rates. The Commerce Department reported that last months building activity drop was the biggest contraction since the decline in September of 2001 when the terrorists attacks put the economy into a recession. The economy needs to see a vast improvement or it will continue to see a fall in the value of the dollar as well as economic development.