ISM Services Index shrank at the fastest pace since 2001 (Yes, Recession). The non-manufacturing index represents almost 90% of the economy. It fell to 41.9.
The worst housing slump in a quarter-century is spreading throughout the economy, hurting businesses such as builders, retailers, wholesalers and mortgage lenders. The report adds to concern Americans are spending less as job losses mount, raising the risk the economy may tip into a recession, economists said.
An index of employment dropped to 43.9 from 51.8, and a gauge of supplier deliveries decreased to 49 from 52.5.
The housing recession is hurting other parts of the economy. Employers in January reduced payrolls for the first time in more than four years, the Labor Department reported last week. Service providers added 34,000 workers to payrolls after an increase of 143,000 in December. Builders trimmed staff by 27,000 workers.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adAUwP4TZb_0&refer=home
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