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Economy Under Siege

10:50 AM MST | January 23, 2009 | Arnold Pearlman

Manufacturing output declined 1.4% in November, and preliminary data show that it dropped at an annualized rate of 12.5% for fourth-quarter 2008. Output dropped an annualized 8.8% in the third quarter. Durables decreased 22% in the fourth-quarter, and nondurables declined 3.9%. Chemical output fell 6.9% in the fourth quarter, after falling 15% in the third quarter and 2.4% in the second quarter. Manufacturing activity continued to decline in December “at a rapid rate,” says the Institute for Supply Management (ISM; Tempe, AZ). New orders contracted in...

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