While nearly all manufacturing industries have been affected, information from the Bureau of Labor Statistics claims that the lumber and wood products industry has been hit particularly hard. 180 jobs in this industry have been lost locally since January 2001. Compounding the jobs lost in this sector is the decline in the average workweek and in the number of overtime hours being worked. Because traditionally these jobs are relatively high paying, lost wages in manufacturing can have a noticeable impact on other sectors of the economy such as retail spending and the housing market. As mentioned last month, increased energy costs have directly impacted manufacturer's costs and their ability to be competitive.
Most economists expect the declines in national manufacturing activity to continue.
Specifically, the sector decreased 0.6 percent over the previous month. National retail sales were lower than expected for the month of February. Economists had optimistic expectations for growth in this sector, but figures declined a slight 0.2 percent over the previous month. This decline may be an indicaton of lower consumer confidence in February. The Home Sales sector of this month's Index has risen for the third consecutive month.