This decline is consistent with national trends as jobless claims hit their lowest point in the nation since 1973. A downward trend indicates a decline in the number of newly unemployed people in both the county and the nation. As was discussed above in the Manufacturing sector, manufacturing orders at local mills are down considerably over August reports in previous years. As discussed in last month's Index , higher interest rates have adverse effects on business profits and on the attractiveness of stocks. By discouraging borrowing, higher interest rates slow down consumer spending and economic growth.
Most economists agree that some deceleration of growth nationally has occurred.
Economists are divided in their predictions for whether or not Alan Greenspan and the Federal Reserve Board will again inch up interest rates at their August 24 meeting. Those who are expecting a rate increase cite continued retail growth, labor shortages, low inventory stockpiles, and supply constraints for retailers. Stay tuned, we will have more economic news next month.