Newsstands Join The List Of Recession Hit

Newsstands Join The List Of Recession Hit

http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/us_magazines_circulation

Two factors are said to be responsible for the decline in sales of magazines at newsstands. The first of course is the ubiquitous recession, which has affected demand of everything, and the second is the availability of free online reading material.

Newsstand sales are the primary generator of revenue for magazines, and subscriptions which are hugely discounted often just shore up the circulation numbers. Hence, the 12% drop in sales in the first quarter of the current year over the same period last year does not augur well for this industry. Circulation numbers however remained steady, but as mentioned earlier; these are usually propped up with large numbers from subscriptions which do not do much for the bottom line.

Many Good Signs Overwhelmed By One Bad Sign

Many Good Signs Overwhelmed By One Bad Sign

http://news.yahoo.com/s/ap/20090901/ap_on_bi_ge/us_economy;_ylt=AmDJX7Plp7fzVsdUBAtWus6yBhIF;_ylu=X3oDMTJmY2VhbTBhBGFzc2V0A2FwLzIwMDkwOTAxL3VzX2Vjb25vbXkEY3BvcwM0BHBvcwMxBHNlYwN5bl9oZWFkbGluZV9saXN0BHNsawNob3BlZnVsZWNvbm8-

Recent reports on economic activity are positive on many fronts. The manufacturing sector reported a growth in August, the first time it has done so in nineteen months. The measure of future home sales showed an increase in July; it was at the highest point it has been in two years. Auto sales were boosted by the highly successful “cash for clunkers” program.

But, and the but here is a big one, consumer confidence continues to remain low. As a result, shoppers are unwilling to spend outside of their bare necessitities, giving rise to the question, “who will buy these goods that the manufacturing sector is producing?” Consumer confidence is impacted to a great extent by the state of the labor market, and the man and woman on the street has not quite recovered from the battering he or she has taken in terms of wage cuts and job losses.

Existing Home Sales Record Increase

Existing Home Sales Record Increase

http://www.bloomberg.com/apps/news?pid=20601087&sid=aA0IiC38A7Ig

It appears that the housing crisis that has held the world’s largest economy hostage may be easing up. July saw existing home sales climb to their highest level in 10 months. This could be a combination of price declines driven by foreclosures, government schemes and attractive borrowing costs. In fact this is probably the best time to buy a house provide you qualify under any of the credit schemes.

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Before we get too optimistic, it is best to also consider sales of new homes which also increased despite not seeing the same buoyancy as existing homes. New home sales are considered by many to be a more accurate indicator of economic health.

Decline In US Manufacturing Continues to Ease

Decline In US Manufacturing Continues to Ease

http://online.wsj.com/article/SB124930793954601517.html

The decline in US manufacturing activity continued to ease in July, with factories boosting their output. The Institute of Supply Management’s Manufacturing Index increased to 48.9 in July, up from 44.8 in June, indicating an increase in new orders and production. Despite the seventh consecutive increase in the index, the level remains lower than 50, an indicator of growth in the segment. The increase, however, indicates that we are nearing the end of the recession and that manufacturing activity is expected to recover in the near future. However, the continued difficulties in the housing and the automobile segments are likely to weigh on overall demand and restrict growth in the manufacturing segment. Although the employment component of the ISM index increased from 40.7 in July to 45.6 in July, layoffs are likely to continue in the coming months.

PCs Not Selling

PCs Not Selling

http://tech.yahoo.com/news/ap/20090723/ap_on_hi_te/us_earns_microsoft

I am really not that keen to burst the bubble of hope and expectation of good times returning which is surrounding us, but maybe we do need a reality check. Microsoft Corp., for the first time since it went public in 1996, declared a decline in revenue for the current fiscal year. Profits for the company dropped 29% in the last quarter.

It looks like consumers are holding on to their machines much longer than they did before. And if they buy, they are picking up the lower priced machines. As a result, profitability margins of PC manufacturers are getting squeezed. Intel earlier this month declared better than expected results. They however tempered their announcement with the statement that improved performance by Intel does not mean that more PCs are selling. Microsoft’s results seem to corroborate that view.

A Push From One Side And A Squeeze From The Other

A Push From One Side And A Squeeze From The Other

http://news.yahoo.com/s/nm/20090709/us_nm/us_usa_states_budgets_unemployment

State budgets are expected to shrivel and their expenses scheduled to mount as the recession continues to hold sway. With income tax being a primary source of revenue for state budgets, it is expected that collections from this source will drop in the current year. Incomes have dropped and the number of unemployed has increased.

Many of these unemployed queue up for the State funded medical aid programs with a lag. Having lost a job, they look for alternate employment for a while, and opt for state aid only when they fail to land a job.

State governments are expected to begin to feel the pinch of the recession now, much later than most others, as their incomes slow down and expenses increase.

Aircraft Industry Struggles To Stay Airborne

Aircraft Industry Struggles To Stay Airborne

http://www.msnbc.msn.com/id/31565942/ns/business-aviation/

Qantas Airways Ltd. has announced that it has cancelled orders for fifteen Boeing 787s and delayed the delivery of fifteen other aircrafts. The reason is not hard to see; difficult times for the airline industry.

What a roller coaster ride it has been for the aircraft industry. From a time, manufacturers such as Airbus and Boeing had order books full for a couple of years, the past year have only seen cancellations.

The Qantas story has been repeated across all airlines operating out of practically every country. With sharp drops in passenger traffic, airlines have been cutting costs wherever they can. Combining flights, reducing services and of course job cuts. This industry will still take a while before it recovers.