President Bush has asked Congress for 75 billion dollars in federal spending and tax cuts to help stimulate the nation?s economy. The president?s call comes just days after the Federal Reserve Board cut interest rates to two and a half percent, the lowest in 40 years. New Hampshire officials hope these moves will help keep the state?s economy from sliding into recession. But as NHPR?s David Darman reports, the evidence is mounting that the state may not escape a downturn.
Economists say that the New England economy is in the same boat as the rest of the nation and is entering a recession. Dr. Alan Clayton Matthews is president of the New England Economic Project. Matthews says the data shows a deepening spread of economic bad news, across key parts of the region?s economy.
46 06 ?the declines in manufacturing and in production of technology products have become more broadbased. All of manufacturing is in decline. And layoffs, have been to such an extent that unemployment rates are rising. And that?s beginning to effect consumer expenditures and demand. 46 27
Perhaps the most severe economic downturn in New Hampshire is unfolding now in areas in and around Berlin and Gorham. There, American Tissue, Incorporated closed two pulp and paper mills, and then declared bankruptcy, putting hundreds out of work. Jerry Little, president of the New Hampshire Bankers Association says that situation needs to be resolved soon, or the repercussions could be devastating for a whole industry.
05 14 ?If the timber industry falters, that means that there are a lot of folks that don?t have money to go out to eat, to buy a new car, to put an addition on their home. They?re going to become much more careful with their use of credit. And that tends to slow things down. 05 42
While bad news emanates from some parts of the state?s economy, other parts of the economy are still doing quite well. Building and construction firms say they are keeping busy on a variety of projects, with more to come for at least six more months. Despite this, Mark Holden, executive director of the Associated Builders and Contractors of New Hampshire and Vermont, says the terrorist attacks of September 11th , coupled with an already slowing economy, have derailed some projects.
12 24 ?There will be some slowdown in specific markets. One would be the restaurant and lodging type activity, hotels, we sense that there might be a little bit of an issue there. We?re wondering what?s going to happen with the airport construction. That?s been a big market, there?s been a lot of activity, and there?s question marks as far as some of the other commercial markets. 12 56
Home builders say they share concern over the general direction of the economy. But so far, their industry has shown no sign of a slowdown. In fact, Sam Ready, executive vice president of the Homebuilders and Remodelers Association of New Hampshire, says local laws limiting development have done more to slow down house construction than most other economic factors. Ready says firms build about half as many houses now as in 1991, and that?s simply not enough.
38 37 because we?re building less?than we did 10 years ago there?s a pent up demand for about 6 or 7 thousand single family homes at this point. And its very difficult to build affordable housing when land costs have gone sky high from concord south to the mass border. 38 54
Builders of all kinds also say there is a shortage of skilled labor for their projects. That may be good news for a few people who find themselves laid off from a previous job. But uncertainty about the region?s economic situation may not clear up soon. Because of that, many business leaders are taking a ?wait and see? attitude about the economy.
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