U.S. businesses are a lot more nimble than they used to be. In recessions prior to the boom in information technology in the 1990s, companies were almost always a step slow in adjusting to sudden weakness in demand. Not anymore. Armed with sophisticated real-time systems for monitoring sales, purchasing, and inventories, companies began trimming payrolls, adjusting inventories, and paring capital spending more than a year ago, when the economy began to slow. Now, as the drop-off in demand has accelerated, so has the pace of cost-cutting. The downside is clear from the more than 2 million jobs lost since only September, including January's steep 598,000 decline, along with the intense pressure those losses are putting on consumer spending.
展开▼
