Original Press Release
Fluctuations in World Energy Market have Significant Impact on U.S. Economy
Press release date: December 14, 2007
WASHINGTON, D.C., December 14, 2007 - Following today's Labor Department report that consumer prices increased 0.8 percent in November the National Association of Manufacturers' Chief Economist David Huether issued the following statement, reiterating the need for an energy bill that increases access to domestic supplies:
Today's report testifies to the fact that fluctuations in the world energy market can have a significant impact on the U.S. economy - the rise in consumer prices is largely the result of the surging cost of energy. These inflationary factors will likely have a dampening effect on consumer spending this quarter, another sign that the economy is slowing.
The data also reinforce the NAM's belief that an affordable and reliable domestic energy supply is essential to the long-term health of the U.S. economy. Next year, Congress should focus on legislation to increase energy supply in order to reduce costs for American consumers.
Outside of energy, prices rose a much milder 0.3 percent, which is only slightly faster than increases during the prior six months.
I do not believe that core inflationary pressures are a significant concern at this point, which should give the Federal Reserve room to make additional rate cuts in the New Year.
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country.
CONTACT: J.P. FIELDER (202) 637-3089