Steven Wood Output Quotations

These data indicate that the manufacturing sectors of the economy are still reeling from slowing demand and bloated inventories. Further declines in output are likely.

There are a few tentative hints -- higher new orders, a drop in the inventory-to-sales ratio -- that the period of maximum weakness has likely passed. Although further declines in output are anticipated, the rate of decline should gradually diminish.

Productivity has slowed during the past year because output has fallen more quickly than employment and hours have been trimmed.

Slower output and employment growth is dampening real income gains, which in turn is slowing spending, ... Although the monthly data continue to be quite volatile during this transition period, the underlying trends are unmistakable -- the economy is slowing from its torrid pace.