Drop in wholesale prices was largest since 1986
Wholesale prices plunged by 1.8 percent in 2001, the biggest drop in 15 years, squeezing some producers but benefiting consumers like these shoppers in downtown Chicago in an ailing economy.
The big decline in the Labor Department's producer price index, which measures prices paid to factories, farms and other producers, came after wholesale prices shot up by 3.6 percent in 2000, the government reported Friday.
A dramatic drop in energy prices reflecting weak demand amid a worldwide economic slump was a key force behind the decline in overall wholesale prices last year.
Economists predict that when the government reports on consumer prices next week, lower energy costs will have played a key role in subduing consumer inflation in 2001.
Agriculture: Kansas wheat farmers plant smallest acreage since '57
Kansas farmers planted the fewest number of acres of winter wheat since 1957, the government said Friday.
Kansas, the nation's leading wheat producer, seeded just 9.4 million acres in winter wheat, Kansas Agricultural Statistics said 400,000 fewer acres from a year ago.
Nationwide, growers planted 41 million acres of wheat this winter, the smallest acreage since 1971 and slightly fewer from the year before, according to the U.S. Department of Agriculture.
Wheat acreage fell sharply in western Kansas, where some counties were down as much as 20 percent from the drought-plagued acreage planted last year. However, northeast Kansas farmers planted 26 percent more acres, putting 240,000 acres into wheat this year.
Television: ABC Family channel to lay off 300 workers
About half the employees at the ABC Family channel will lose their jobs as a result of the channel's purchase by The Walt Disney Co., a source familiar with the plan said.
About 300 administrative and support staff will be laid off as the channel is integrated into the business unit that also runs the ABC Television network.
ABC Family's 600 workers received a letter notifying them of meetings next week when they will learn their status.
Disney bought Fox Family Worldwide last year, which included the Fox Family Channel, renamed ABC Family. The channel broadcasts a mix of original programs and reruns originally aired on ABC.
Economy: Terrorist attacks to cost 1.6 million jobs this year
A study released Friday predicts the Sept. 11 terrorist attacks will reverberate through the U.S. economy for years, wiping out more than 1.6 million jobs in 2002 alone.
The losses will hit hardest in cities with exposure to the tourism and airline sectors, but also will spread across a wide range of industries, from dining to financial services, according to the Milken Institute, a Santa Monica-based economic think tank.
New York City will lose nearly 150,000 jobs in 2002, followed by Los Angeles with 69,000 jobs and Chicago with at least 68,000 jobs. Already, 248,000 jobs have been lost nationwide because of the attacks, the institute said.
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