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Why Is Manufacturing Weakens Led By Drop In Auto Production

344 Words2 Pages

Hannah Leou
UNIT 1 EXTRA CREDIT
AP Economics - Period 2
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Article: “Manufacturing Weakens, Led by Drop in Auto Production”
Source: The New York Times http://www.nytimes.com/2015/09/16/business/economy/manufacturing-weakens-led-by-drop-in-auto-production.html?ref=economy&_r=0
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The article, “Manufacturing Weakens, Led by Drop in Auto Production,” demonstrates that there are many intricate economic principles at play in the modern day market. In recent months, retail sales and business inventories have reported significant gains. Meanwhile, industrial production (i.e. the automotive industry) has taken an unfortunate and sharp downturn. …show more content…

These plummeting unemployment rates are directly correlated to increased household incomes which in turn increase the demand for “wants” or normal goods. The 2.9 million additional jobs in the last year alone have significantly decreased previously rising unemployment rates. The increased demand by consumers has led suppliers to aggrandize the quantity of supplied goods. These suppliers are willing to increase the amount of goods because they have promising expectations of future

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