U.S. ECONOMY

Slowing foreign markets and fears that price deflation will narrow profit margins are dampening manufacturers’ optimism about the U.S. economy, according to a survey conducted in February by the National Assn. of Manufacturers. Forty-four percent of respondents to the survey said a slowing economy will force them to drop prices for their final products in 1999; 28% predicted a drop last year. About 57% said they plan to maintain their current number of employees, and more than 31% said they plan to increase full- and part-time job slots. About 13% said they expect to cut jobs. Forty-three percent said they expect earnings growth to fall, and 64% said they expect inflation to be in the range of 2% or lower. The survey went to 2,500 U.S. manufacturers in February and had a response rate of 15%, NAM said.