Software

So far, the national trends in costs for wages, salaries, and benefits have glossed over these concerns. The growth in labor costs continued to slow in the second quarter - a pattern that held true in all major regions. However, the slowdown in labor costs is due solely to sharp cutbacks in what companies, mainly large corporations, are paying for benefits, which make up about a fourth of total compensation costs nationally. Because of slower growth in health care costs, workers' compensation, and state unemployment insurance, benefits grew only 2.6% during the past year, the lowest pace on record.
But since few have marked down their own prices in line with the metal's fall, they will be able to recoup much of the difference. Not so the producers, whose income is directly related to the fluctuating daily price on the London Metal Exchange.
The Japanese have their electronics, the Germans their engineering. But when it comes to command of global markets, the U.S. owns the service sector.
Meanwhile, pressure has been growing from the car companies. GM ships about 60% of its cars and trucks with Ryder, while Chrysler ships some 40%.
First of all, current modest demand growth will not support any more increases that large. Second, now that manufacturers have worked to get their inventories lower, they will be cautious about adding goods in coming months.