Dec 5 (Reuters) - U.S. President-elect Barack Obama will
take office at a time when the U.S. recession is deepening,
with many analysts warning of the potential for a protracted
downturn.
The following is a look at recent economic data that underscore the economy's fragile condition:
* U.S. employers axed 533,000 jobs in November, the most in 34 years as the recession inflicted a mounting toll on the U.S. labor market. The unemployment rate rose to 6.7 percent in November, the highest reading since 1993, compared with 6.5 percent in October. October's job losses were revised to show a cut of 320,000, previously reported as a 240,000 loss, while September's were revised to a loss of 403,000 from down 284,000.
* The Institute for Supply Management's non-manufacturing index sagged to 37.3 in November, a record low. The index was at 44.4 in October and a reading below 50 indicates a contraction. The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants.
* U.S. non-farm productivity growth in the third quarter was the slowest so far this year, with output posting its biggest decline in seven years. Third-quarter productivity rose at an annual rate of 1.3 percent after expanding 3.6 percent in the second quarter.
* U.S. auto sales plunged nearly 37 percent in November to a seasonally adjusted annual rate of around 10.2 million, the lowest in 26 years. Sales fell for the 13th consecutive month in November, led by a 47 percent sales drop at Chrysler and a 41 percent decline at General Motors Corp.
* U.S. manufacturing activity slumped in November to its weakest level since the 1981-1982 recession. The Institute for Supply Management's index of national factory activity fell to 36.2 in November from 38.9 in October. The prices paid subcomponent dropped to 25.5, the lowest since 1949.
* U.S. gross domestic product shrank at a 0.5 percent annual rate in the third quarter, the sharpest contraction in seven years, and analysts expect a much steeper decline in fourth-quarter GDP. The private-sector panel that dates U.S. recessions says the economy entered a downturn in December 2007.
* Consumer spending, which fuels two-thirds of U.S. economic activity, plunged 1 percent in October, the biggest decline in more than seven years. U.S. consumer confidence in November declined to a 28-year low.
((Complied by Reuters' Washington economics newsroom; editing by Dan Grebler)) Keywords: USA OBAMA/ECONOMY (lucia.mutikani@thomsonreuters.com: Tel 202 898 8315; Reuters messaging: lucia.mutikani.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The following is a look at recent economic data that underscore the economy's fragile condition:
* U.S. employers axed 533,000 jobs in November, the most in 34 years as the recession inflicted a mounting toll on the U.S. labor market. The unemployment rate rose to 6.7 percent in November, the highest reading since 1993, compared with 6.5 percent in October. October's job losses were revised to show a cut of 320,000, previously reported as a 240,000 loss, while September's were revised to a loss of 403,000 from down 284,000.
* The Institute for Supply Management's non-manufacturing index sagged to 37.3 in November, a record low. The index was at 44.4 in October and a reading below 50 indicates a contraction. The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants.
* U.S. non-farm productivity growth in the third quarter was the slowest so far this year, with output posting its biggest decline in seven years. Third-quarter productivity rose at an annual rate of 1.3 percent after expanding 3.6 percent in the second quarter.
* U.S. auto sales plunged nearly 37 percent in November to a seasonally adjusted annual rate of around 10.2 million, the lowest in 26 years. Sales fell for the 13th consecutive month in November, led by a 47 percent sales drop at Chrysler and a 41 percent decline at General Motors Corp.
* U.S. manufacturing activity slumped in November to its weakest level since the 1981-1982 recession. The Institute for Supply Management's index of national factory activity fell to 36.2 in November from 38.9 in October. The prices paid subcomponent dropped to 25.5, the lowest since 1949.
* U.S. gross domestic product shrank at a 0.5 percent annual rate in the third quarter, the sharpest contraction in seven years, and analysts expect a much steeper decline in fourth-quarter GDP. The private-sector panel that dates U.S. recessions says the economy entered a downturn in December 2007.
* Consumer spending, which fuels two-thirds of U.S. economic activity, plunged 1 percent in October, the biggest decline in more than seven years. U.S. consumer confidence in November declined to a 28-year low.
((Complied by Reuters' Washington economics newsroom; editing by Dan Grebler)) Keywords: USA OBAMA/ECONOMY (lucia.mutikani@thomsonreuters.com: Tel 202 898 8315; Reuters messaging: lucia.mutikani.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.