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Moskow: factory future unclear
Chicago Fed President Michael Moskow said it's too soon to tell if Midwest factories will be able to compete with countries such as China where low-cost labor is abundant. "We cannot and will not know whether this is the case for quite some time," he said. It's unclear how much of the downturn is structural, not cyclical. Rising productivity is one cause of lost factory jobs.
** Treasury Secretary John Snow, in a Sept. 12 letter to senators, said he wanted China to move to a more flexible exchange rate "now" and vowed to keep applying pressure.
New data measure labor churn
U.S. firms added 7.746 mil jobs in Q4 '02, but cut 7.816 mil jobs for a net loss of 70,000 jobs, the Labor Dept. said. Of all private-sector jobs at year-end, 7.2% didn't exist in Sept. '02, while 7.3% of jobs disappeared by Dec. Of those new jobs, 1.632 mil were due to a new business opening, while 1.627 mil jobs were lost due to business closings.
** Crude oil futures rose 80 cents to $29.20 a barrel in New York trading and are up about $2 since OPEC ...