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To: Jim Willie CB who wrote (6554)	9/17/2002 9:38:26 AM
From: TigerPaw	Read Replies (2) \| Respond to of 89467

Inventory levels rise as sellers stock up Surge in automobile, retail sales' prompt businesses to increase their stockpiles By Siobhan Hughes BLOOMBERG NEWS Tuesday, September 17, 2002 WASHINGTON -- Spurred by strong automobile sales, inventories at U.S. factories, wholesalers and stores rose more in July than at any time in 1 1/2 years, providing a bright spot for the struggling economic recovery. The 0.4 percent increase in inventories was the strongest since November 2000 and followed a 0.3 percent gain in June, the Commerce Department said. Sales at U.S. businesses jumped 1.2 percent, four times the prior month's gain and the largest rise since April. Companies reduced stockpiles at a record rate last year, and economists expect production to pick up when they start to refill them. Auto inventories were 16 percent below normal last month as vehicles sold at the fastest pace since October, according to an analysis by Merrill Lynch & Co. That has led General Motors Corp. to announce plans to for 7 percent increase in fourth-quarter produc- tion. "The industry is just going flat out to keep up with sales," said Robert Schnorbus, chief economist for J.D. Power & Associates, an industry research group. Stocks were mixed on investors' concerns about the possibility of war between the U.S. and Iraq. The news about Iraq allowing weapons inspections didn't break until after the market closed. The Dow Jones industrial average rose 67.49, or 0.8 percent, to close at 8,380.18. The Nasdaq fell 15.52, or 1.2 percent, to close at 1,275.88. Retail inventories, which account for about one-fourth of business stockpiles, rose 0.9 percent in July after rising 0.5 percent in June. Stockpiles increased at car dealers, furniture outlets and department stores. Retail sales increased 1.3 percent after rising 1.5 percent. At car dealers, inventories rose 1.8 percent in July, and sales jumped 4 percent. Auto dealers had a 47-day supply last month, below the 56-day supply they target, according to a Merrill Lynch report. The day's supply figure equals total vehicles divided by daily selling rate. At department stores, stockpiles increased 0.8 percent in July, while sales dropped. That explains why retailers are cautious about adding much to inventories. Other retailers are keeping inventories lean to reduce costs amid concern about the strength of the economic recovery. "Retailers by and large are very conservative," Skechers U.S.A. Inc. Chief Financial Officer David Weinberg said. "Their big issue is to keep inventory down."

To: Jim Willie CB who wrote (6554)	9/17/2002 10:26:21 AM
From: TigerPaw	Read Replies (1) \| Respond to of 89467

THE AUGUST UNEMPLOYMENT RATE MASKS THE SEVERITY OF THE DOWNTURN AND THE PROBLEMS OF THOSE EXHAUSTING THEIR UNEMPLOYMENT BENEFITS cbpp.org Although by some commonly used measures the consequences of the recent downturn have not been as severe as the consequences of the recession of the early 1990s, by certain other measures the recession that began last year has hit workers just as hard as the recession of the early 1990s. In fact, by some important measures, such as the actual number of workers whose federally-funded unemployment benefits are running out before they are able to find a new job — this recession has hit workers harder than the last recession. This analysis also examines other reasons why not too much should be read into the downward tick in the unemployment rate in August. TP