More Reports Support Chapman Forecast

Remember Chapman University’s prediction last month that economic growth in Orange County would slow considerably during the remainder of the year? Chapman’s forecast was based largely on the belief that Asia’s financial woes would lead to a slowing in the national economy, which would then trigger a weakening in the county economy.

Two reports last week indicate Chapman’s outlook might be right on the money. On Thursday, the Labor Department said the U.S. job-creating engine throttled back a bit in June, pushing the unemployment rate to a three-month high of 4.5% as manufacturers pared their payrolls. Asian economic turmoil and the General Motors strike were cited as the main culprits behind the slower job growth.

Also, the Commerce Department reported that new orders received by U.S. factories weakened across the board in May and shipments dropped again, as the nation’s industrial sector was dragged down by declining Asian exports and overstocked inventories.

One bright spot: Boeing Co. said it delivered 139 jetliners in the second quarter, just three fewer than its target of 142 and better than some analysts had expected. The airplane maker has been struggling for months with production bottlenecks. If Boeing’s production problems are over, that’s good news for local aircraft parts suppliers.