Sign in Subscribe
Telecommunications systems

Manufacturing Growth Decline Raises Concerns

Strategic Insights

— 1 min read

The US manufacturing sector experienced a decline in growth, according to the National Association of Purchasing Management's index, which fell to 51.4 in May from 52.9 in April. This unexpected decline has raised concerns about an economic slowdown due to Asia's financial troubles and decreased US exports and imports. Meanwhile, the telecommunications industry is experiencing significant developments, with Lucent Technologies reaching a tentative agreement with two unions representing a third of its workforce, and SBC Communications planning to partner with Andrade Gutierrez to bid for Brazilian mobile phone companies.

Key Takeaways:

  • The National Association of Purchasing Management's index fell to 51.4 in May from 52.9 in April, indicating a decline in manufacturing growth.
  • The expected projection was a slight decline or no change, indicating that the actual decline was unexpected.
  • The decline in manufacturing growth has raised concerns about an economic slowdown.
  • Lucent Technologies has reached a tentative agreement with two unions, the International Brotherhood of Electrical Workers and the Communications Workers of America, on a new labor pact.
  • The agreement provides better pay and benefits for workers and ended a brief work stoppage.
  • The labor pact applies to 19,000 workers represented by the International Brotherhood of Electrical Workers and 24,000 workers represented by the Communications Workers of America.
  • SBC Communications plans to partner with Andrade Gutierrez to bid for Brazilian mobile phone companies.
  • The partnership will allow SBC to take the lead in bidding for the mobile phone companies being spun off from Telecomunicacoes Brasileiras SA.

Statistics:

  • The National Association of Purchasing Management's index fell to 51.4 in May from 52.9 in April.
  • The index is based on interviews with corporate purchasing executives nationwide.
  • Lucent Technologies has a total of 131,000 workers worldwide.
  • 19,000 workers are represented by the International Brotherhood of Electrical Workers.
  • 24,000 workers are represented by the Communications Workers of America.
  • 70 million users rely on Netscape's browser.

Sources:

  • National Association of Purchasing Management
  • Travelers Group Inc.
  • Nikko Securities Co.
  • Audiovox Corp.
  • Bosch Telecom unit of Robert Bosch GmbH
  • Lucent Technologies
  • SBC Communications Inc.
  • Andrade Gutierrez
  • Telecomunicacoes Brasileiras SA
  • Netscape Communications Corp.

Read more