AGL 40.05 Increased By ▲ 0.05 (0.13%)
AIRLINK 127.50 Increased By ▲ 0.46 (0.36%)
BOP 6.59 Decreased By ▼ -0.08 (-1.2%)
CNERGY 4.52 Increased By ▲ 0.01 (0.22%)
DCL 8.44 Decreased By ▼ -0.11 (-1.29%)
DFML 41.65 Increased By ▲ 0.21 (0.51%)
DGKC 86.80 Decreased By ▼ -0.05 (-0.06%)
FCCL 32.23 Decreased By ▼ -0.05 (-0.15%)
FFBL 65.10 Increased By ▲ 0.30 (0.46%)
FFL 10.12 Decreased By ▼ -0.13 (-1.27%)
HUBC 110.42 Increased By ▲ 0.85 (0.78%)
HUMNL 14.69 Increased By ▲ 0.01 (0.07%)
KEL 5.17 Increased By ▲ 0.12 (2.38%)
KOSM 7.24 Decreased By ▼ -0.22 (-2.95%)
MLCF 41.49 Increased By ▲ 0.11 (0.27%)
NBP 60.25 Decreased By ▼ -0.16 (-0.26%)
OGDC 194.00 Increased By ▲ 3.90 (2.05%)
PAEL 28.15 Increased By ▲ 0.32 (1.15%)
PIBTL 7.86 Increased By ▲ 0.03 (0.38%)
PPL 150.95 Increased By ▲ 0.89 (0.59%)
PRL 26.70 Decreased By ▼ -0.18 (-0.67%)
PTC 16.19 Increased By ▲ 0.12 (0.75%)
SEARL 78.39 Decreased By ▼ -7.61 (-8.85%)
TELE 7.39 Decreased By ▼ -0.32 (-4.15%)
TOMCL 35.40 Decreased By ▼ -0.01 (-0.03%)
TPLP 7.91 Decreased By ▼ -0.21 (-2.59%)
TREET 15.90 Decreased By ▼ -0.51 (-3.11%)
TRG 52.75 Decreased By ▼ -0.54 (-1.01%)
UNITY 26.60 Increased By ▲ 0.44 (1.68%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 9,955 Increased By 71.5 (0.72%)
BR30 30,899 Increased By 298.5 (0.98%)
KSE100 93,987 Increased By 631.8 (0.68%)
KSE30 29,153 Increased By 222.3 (0.77%)

Rising pension, healthcare and energy costs are pinching US manufacturing profits and holding back vital hiring and investment, according to an industry study released on October 11.
Its findings send a warning to policy-makers, who are worried about sluggish capital expenditure and are anxious for it to improve to provide a safety net for the US economy in case consumers slow their spending.
The study from the Manufacturing Institute and the Manufacturers Alliance/MAPI found profits were 67 percent lower in five key US industries than would have been the case if not for these costs. It also cited the impact of global competition. "These structural costs have changed the dynamics of American manufacturing," said Jerry Jasinowski, president of the Manufacturing Institute. "These costs are generally greater than our competitors'," he told a news conference.
US corporate profits have surged since a recession in 2001. But the bonanza has not been equally shared, with the motor vehicle, fabricated metals, machinery, electrical equipment and chemical industries all badly lagging. These sectors account for almost 50 percent of US manufacturing, or around a quarter of the growth in the US economy, and are important for continued prosperity.
Robust spending by US households has been powering the US economy. But consumers are being squeezed by soaring gasoline and heating oil prices, as well as the fear that the country's rampant housing market may be cooling off.

Copyright Reuters, 2005

Comments

Comments are closed.