Sharp drop expected in US manufacturing

[Americanhero1]

Manufacturing in the US probably shrank at the fastest pace since 1980 amid signs that 2008 was the worst year ever for Wall Street.
The Institute for Supply Management's December factory index, due Jan. 2, is expected to drop to 35.4, the lowest reading in almost three decades. Readings below 50 indicate contraction.

The Federal Reserve Bank of New York's general economic index fell in December to the lowest level since records began in 2001, and the Philadelphia Fed's index showed industries in that region contracted for the 12th time in 13 months, Bloomberg said.

The credit squeeze gripping the US has affected all sectors, from banks to autos and resources, resulting in a surge in unemployment and an unprecedented drop in consumer spending.

The Labor Department said last week that the number of American workers filing initial claims for unemployment benefits climbed to 586,000 in the week ended Dec.20, the highest rise in US jobless claims since 1982.

Almost 2 million workers have lost their jobs this year across the US, driving the unemployment rate to 6.7 percent.

Total retail sales dropped by as much as 4 percent during the traditional November-December shopping period even after retailers slashed prices to woo bargain hunters, the MasterCard Inc.'s SpendingPulse unit said in a preliminary survey report on Thursday.


The market's most tracked benchmark, the S&P 500, is down 40.6 percent since last year's close, which is close to surpassing 1931's 47.1 percent drop, the biggest yearly decline ever.

In what can be considered the worst year ever for Wall Street, a record $7.3 trillion of stock market value has been obliterated this year, according to the Dow Jones Wilshire 5000 index, the broadest measure of US equity performance.

US President-elect Barack Obama, who takes office on Jan. 20, is expected to unveil a stimulus package worth up to $1-trillion to relieve the deteriorating state of US economy.

Obama has vowed to revolutionize the economy through a comprehensive recovery plan which includes the creation of 2.5 million new jobs and the largest infrastructure investment since the 1950s.

http://www.presstv.ir/Detail.aspx?id=79732&sectionid=3510213

[briann]

Boy... that 1 trillion dollar 'stimulus' plan will sure fix it.

[Americanhero1]

Boy... that 1 trillion dollar 'stimulus' plan will sure fix it.

Why stop at that number why not even more lets try to fix Mexico's economy as well as the rest of central ans South America

[SavetheWest]

It's probably a good idea to buy stocks and commodities over the next couple of days.  The stimulus package will boost the economy temporarily and the Obamunists will start buying stocks and houses to help their dear leader in his quest for eternal worship and glory.  Let them buy, buy and buy and then you need to sell immediatly.  Briann and Baltimore probably have a better take on this though because I put the only extra $ I had into Wamu, got greedy, should have sold when it tripled in two days and lost it all.