The rates were at a 10-year high when the central bank made its emergency rate cut early this month, reacting to the sudden slowing of the economy. The day before the move, a survey by the National Association of Purchasing Managers showed that manufacturing volume skidded in December to its lowest point since the end of the last recession in the early 1990s, as orders and production declined. A research institute, The Conference Board, reported that its index of consumer confidence fell in December to the lowest level in two years. The U.S. Department of Commerce said that while manufacturing orders rebounded slightly in November after slipping in October, inventories rose for the eighth consecutive month, indicating that producers will have to cut output further if sales do not pick up dramatically. Tennessee economic recruiters say the sluggishness is, to some degree, expected.
Manufacturers counter that the slump is more serious.
It s down. Since April, production has been reduced from 70 units per day to 16 as of Friday. Car and light truck sales a critically important sector in Tennessee hit the brakes hard in the fourth quarter, although strong performance earlier in 2000 led to an increase over 1999. Major transportation manufacturing employers in the state including Peterbilt supplier Briskin Manufacturing Co. in Lebanon and electric motor maker Bosch Automotive Motor Systems Inc. in Hendersonville have shut down. Others have downsized.