Payrolls Probably Dropped in U.S., Manufacturing Stalled as Growth Slowed

from Bloomberg:



Payrolls Probably Fell, Factories Stalled: U.S. Economy Preview

By Shobhana Chandra

Aug. 31 (Bloomberg) -- Payrolls in the U.S. probably fell in August for an eighth month and manufacturing stalled, signaling growth faltered, economists said before reports this week.

Employers probably cut 75,000 jobs this month, according to the median estimate in a Bloomberg News survey ahead of a Labor Department report Sept. 5. A private poll in two days may show factory activity stagnated for a second month.

Mounting job losses, sliding home values, reduced access to credit and rising prices have given Americans reason to pull back. Gripped by this vicious circle of firings and spending cuts, the economy may weaken again in coming months.

``The deterioration will be quite noticeable,'' said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. ``We'll see job cuts continuing as businesses are under a lot of pressure. The manufacturing sector is getting support from exports, but being held back by weak domestic activity.''

The employment report may also show the jobless rate was unchanged this month at a four-year high of 5.7 percent, according to the Bloomberg survey median. Factory payrolls probably fell by 35,000.

Soaring costs and slowing sales are pushing carmakers and airlines to cut staff. UAL Corp.'s United Airlines, the world's second-largest carrier, last week said it'll eliminate 1,550 flight-attendant jobs to help stem losses. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aF7X50i2X2ZE&refer=home