Manufacturing Shrinks Most Since 2003

January 2, 2008
Manufacturing Shrinks Most Since 2003

Jan. 2 (Bloomberg) -- Manufacturing in the U.S. shrank the most last month in almost five years, triggering speculation that the Federal Reserve will cut interest rates by half a percentage point to stave off a recession.

The Institute for Supply Management's factory index fell to 47.7, from 50.8 the prior month, the Tempe, Arizona-based group said today. The figure was lower than forecast by any economist surveyed by Bloomberg News. Fifty is the dividing line between contraction and expansion.