By Sue Kirchhoff and Barbara Hagenbaugh, USA TODAY
WASHINGTON — A rash of dismal data Monday underscored economists' fears that the nation is falling into a deep recession, with manufacturing plummeting, banks pulling back on consumer and business loans and construction spending dropping.
Of particular concern is a sharp decline in export orders for U.S. goods, which had been a bright spot in the economy. Global demand is slowing as foreign economies falter and the U.S. dollar rises against other currencies.
"The plunge in new export orders to a new all-time low raises concerns that the only remaining area of strength for the U.S. economy might also collapse," said Harm Bandholz, economist at UniCredit Markets.
U.S. manufacturing activity sank to the lowest level in more than 26 years in October as orders, production, employment and exports all declined, the Institute for Supply Management said Monday.
The ISM index of factory activity was 38.9 in October, down from 43.5 in September and the lowest since September 1982, when the economy was in one of the longest recessions in the post-war period. A reading below 50 points to contraction. "October was the month in which the manufacturing sector came off of its pedestal," says Norbert Ore, head of the ISM survey.
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