WORLD> America
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WORLD> America
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US is in a 14-month recession, forecasters say
(Agencies)
Updated: 2008-11-18 11:17 The Fed said the revision to September output resulted, in part, from a larger estimate of the impacts that Hurricanes Gustav and Ike had on the chemical industry. This also set a lower base for October.
"The October improvement is not anything to cheer about," said Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI, a private economic research organization. "Empire" Stricken In a separate report, the New York Fed said its "Empire State" general business conditions index fell to minus 25.43 in November from minus 24.62 in October. That was the lowest reading on manufacturing in New York state since the inception of the index in July 2001. The report "paints a dim picture," said David Ader, head of government bond strategy at RBS Greenwich Capital, in Greenwich, Connecticut. "Still, this is not exactly surprising but more confirmation," he added. Economists polled by Reuters had expected an even weaker reading of minus 26.10. The report, based on a survey of manufacturers in New York state, was generally bleak. The indexes for new orders and shipments slid to record lows, while the measures for unfilled orders, employment and inventories all slipped to their lowest levels since late 2001. As with many recent reports, the one silver lining was that inflation measures fell, which should give the Federal Reserve leeway to continue holding interest rates low as it fights the effects of the worst financial crisis in 80 years. The prices paid index fell for the fourth straight month and the prices received index tumbled to its lowest level in more than three years, the report said. |
