Payrolls Probably Fell for Fifth Month; U.S. Economy Stagnating

[marmar]

Stagnating is Greek for "Collapsing". :think:



from Bloomberg:


Payrolls Probably Fell for Fifth Month: U.S. Economy Preview

By Shobhana Chandra

June 1 (Bloomberg) -- The U.S. lost jobs for a fifth month in May and manufacturing contracted, signaling the economy is stagnating, economists said before reports this week.

Payrolls probably dropped by 60,000 workers, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's June 6 report. Figures tomorrow may show the Institute for Supply Management's factory index fell to 48.5 in May.

Credit restrictions triggered by foreclosures, along with soaring food and fuel prices, have caused spending to slow, prompting banks, construction companies and manufacturers to fire workers. Rising joblessness heightens the risk that consumers will keep retrenching, further hurting growth.

``The job market is really emphasizing how bad things are in the economy,'' said Lindsey Piegza, an economic analyst at FTN Financial in New York. ``Payroll declines will further weaken consumer spending.''

The projected decrease in May payrolls would follow a decline of 20,000 in April that brought the total number of jobs lost so far this year to 260,000. The jobless rate likely rose to 5.1 percent from 5 percent, according to the survey median.

Factory payrolls probably shrank by 40,000 workers, reflecting automakers' efforts to trim costs, according to the survey median.

General Motors Corp., the biggest U.S. automaker, said last week that 26 percent of its union workforce accepted the latest offer to leave the company and help clear out its highest-paid factory workers. About 19,000 of GM's United Auto Workers members signed up for the buyout packages, and most will stop working by July 1, the company said. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aUYG2fgTYF8s&refer=home

[raccoon]

1. kick nt

[mikeytherat]

2. "Probably"? And yet, in the article, it seems clear that it is anything but

"probable."

mikey_the_rat