Two more economic indicators on Monday further documented the economic downturn which has now been officially labeled a recession.
The Commerce Department reported a 1.2 percent drop in construction spending in October, which was worse than the 0.9 percent decline that had been expected. Home building has fallen every month for the past 21/2 years.
An indication that construction activity will decline even more is the drop in construction of hotels and other commercial or retail projects.
Also Monday, the Institute for Supply Management reported that manufacturing activity had fallen to a 26-year low in November. As a result, manufacturers are cutting jobs with unemployment expected to rise.
While some have avoided saying it, the National Bureau of Economic Research has declared the economy in a recession that began in December 2007. Many economists believe the recession will last into the middle of 2009.
The dismal numbers, gloomy predictions and long-term outlook make the economy the top domestic issue facing President-elect Barack Obama.