In a speech delivered by satellite to a bond traders convention Friday in West Virginia, Greenspan indicated he has not lost faith in the belief that massive investments in computers and other high-tech equipment in recent years have permanently improved the outlook for productivity. Merrill Lynch chief economist Bruce Steinberg projects consumers will tighten their belts in the second and third quarters as the labor market weakens. If layoffs mount and payrolls begin to contract sharply, consumer spending will weaken further. U.S. Rep. Steve Buyer, R-Ind., points to the recent sagging stock market as a cautionary sign for the near future. Unemployment is increasing in counties I represent.
People are strapped for credit and there's a downturn in the economy.
Wabash National Corp., Fielder's Choice and iSKY are among local companies that have eliminated jobs this year. HPA Monon Corp. and Fairfield Manufacturing Co. instituted layoffs during the first quarter. Some of those cuts haven't shown up on the unemployment rolls. But Lillian Miles, a labor market analyst who focuses on the Lafayette area for the Indiana Department of Workforce Development, isn't forecasting a drastic increase in local joblessness. You will have some industrial groups adding workers.