A drop had been expected, but the 33.5 percent decline surprised analysts, who suggested that overall demand might be weakening.

The industrial unit, which has 30,000 employees, said demand for its products and services was weakening.

And the problem is that when demand weakens elsewhere, everybody wants to send their excess production to North America.

But light-truck sales rose 11.6 percent, suggesting that overall demand had weakened only slightly.

But at the very time they were raising rates, the demand was weakening.

"Manufacturers expect that demand will weaken so they don't want to increase their cost base."

Besides, they drain batteries, and too many demands on the computer chips inside a phone can sometimes weaken reception.

This week, the government reported that industrial production sank 2.1 percent in February from the month before as demand for electronic machinery weakened.

Historically, when these economic fundamentals go down, the demand for autos weakens.

Companies are simply unable to pass on higher costs, because demand is weakening across the board.