By Evelina M. Tainer, Chief Economist, Econoday
October 4, 2002

Economic figures reported this week, including the all-important employment situation, were generally weaker than expectations. From motor vehicle sales to the ISM index to nonfarm payrolls, the reports were indicative of a sluggish environment. While Americans are operating under the threat of a war with Iraq, a more urgent economic problem came to the forefront. West coast ports were hampered by a longshoreman lockout. Ports stopped operating on Sunday. In this era of just-in-time inventories that help producers manage inventory costs, a solution needs to be found sooner rather than later. In Oakland, California, the NUMMI auto plant had to be shut down due to lack of parts. Fruits and vegetables in all West Coast ports were stuck in limbo and are likely to rot before reaching their destination. Asian manufacturers are unable to ship their goods. A protracted strike will certainly dampen U.S. growth but will also hurt our trading partners, particularly in Southeast Asia.