Steven Wood Decline Quotations

Unseasonably mild weather in January, coming after unseasonably severe weather in December, generated a huge increase in housing starts. Moreover, February's weather is likely to generate a big decline in housing activity next month.

Manufacturing is still mired in a deep recession, although the rate of decline may be slowing. The rapid adjustment in reducing inventories will eventually slow and ultimately reverse, giving the factory sector a lift.

While some of the decline was related to the effects of Hurricane Floyd, the fact that all four regions fell suggests that higher mortgage rates are also having a constraining effect.

Although the (Fed) will not be pleased with the sharp decline in productivity growth over the past year, they will view it as a cyclical phenomenon rather than a retreat from the productivity-led expansion of the past 5 years.

Housing activity remains quite robust despite the slowing economy, decline in jobs, and faltering stock market.