Document Rp7oV6OYLEBgX2azwNYmwO5ya

Acceturo v. A bex Corp., et a t, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6601-99-A S ; 03/07/06 Acceturo v. Abex Corp., et a t, Superior CL, Law Division, Middlesex Cty., New Jersey, Docket No. MID-L~660l-99-AS; 03/07/06 Internal Correspondence Dal(, December 4, 1906 To. ILL. Cotter Axle $ Brake - Galesburg Copy: From. See Attached L.J. Valentine - Axle & Brake Division Headquarters-Galesburg subleot MARKETING DEPARTMENT MONTHLY REPORT - NOVEMBER 1906 GENERAL ECONOMY Industrial production Is still down. U.5. manufacturers continue to be more competitive by cutting labor costs; but at the expense of slower growth in jobs and incomes. OuLput griiwlh in the nation's factories, utilities, and mines slowed to zero in the month of October. Output In Uie fourth quarter started off weak. Short term effects of tax reform will tend to slow growth -- particularly business spending and construction. Thu crediL market is resisting lower interest rates at tho expense of housing. The drop off of auto production, which enn be extremely volatile, held off the overall October advance, as output of new cars fell to 7.3 million units at an annual rate (from 7.7 million in September). Excluding autos, production would have been up 0.2% October's production of consumer home goods was still being held by the strength in housing earlier in the year. With housing losing ground, production of home gootls may suon follow. Manufacturing output has been sLagnanL for the past two months -- and hasn't posted a gain since August -- and that was only U.2%. It is expecLed thet consumer spending will not be able to support the economy the way it did earlier in the year. Retail sales plunged 5% in October (to $121.6 billion -- seasonally adjusted). P-E9VT-0655 EAB 0U71J