This report marks the first time in three months that the manufacturing sector was not down across all comparisons. The manufacturing sector increased 11.59 percent over the previous month. As described in both the energy and employment sections above, the manufacturing sector in this region, as well as across the nation, is in decline. Increased energy costs have directly impacted manufacturer's costs and their ability to be competitive. Layoffs across the manufacturing sector have resulted in the loss of traditionally high paying employment.
Most economists expect the declines in national manufacturing activity to continue.
Although the manufacturing sector in this region was up in the month of January, we will need several months before we know if the local region is breaking the downward trend. Specifically, the sector increased 2.06 percent over the previous month. National retail sales were stronger than expected for the month of January. Sales grew by 0.7 percent over the previous month. This is the strongest single-month increase since September 2000.