U.S. economic depression of 2008 update: manufacturing orders dropped to lowest levels since 1948.

U.S. depression update, Jan. 2, 2008, found here, at Bloomberg.com:

Jan. 2 (Bloomberg) — The decline in U.S. manufacturing deepened in December as demand for such products as cars, appliances and furniture reached the lowest level since at least 1948, signaling further cutbacks in factory jobs and production this year.

The Institute for Supply Management’s factory index fell to 32.4, below economists’ forecasts and the lowest level since 1980, from 36.2 the prior month. Readings less than 50 signal contraction. The group’s new-orders measure reached the lowest level on record and prices slid the most since 1949.

“Every component suggests that the weakness is going to carry over into 2009,” Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina, said in a Bloomberg Television interview. “There’s just not a whole lot of new business coming in,” and companies will have a “painful adjustment” as consumers shun spending.

Today’s figures underscore that, with private demand collapsing, manufacturers’ best hope for new business this year may be President-elect Barack Obama’s plans for an unprecedented stimulus package. Obama has pledged an investment program in roads, schools and the U.S. energy network akin to the 1950s- era interstate highway construction boom….”

U.S. consumer prices fell in November at the fastest rate since 1932, the darkest days of the Great Depression, the Labor Department reported Tuesday

MarketWatch.com reported the following today:

“U.S. consumer prices fell in November at the fastest rate since 1932, the darkest days of the Great Depression, the Labor Department reported Tuesday, as prices for energy, commodities and airline fares plunged across the country.

The U.S. consumer price index fell by a seasonally adjusted 1.7%, the department reported, the biggest drop since the government began adjusting the CPI for seasonal factors in 1947.
But on a non-seasonally adjusted basis, the CPI fell by 1.9%, the biggest decline since January 1932, at the nadir of the Great Depression. Read MarketWatch First Take commentary.
“This is scary stuff,” said Mike Schenk, an economist for Credit Union National Association. “We are teetering on the brink of a massive downward spiral. Deflation is a threat.”
The seasonally adjusted core CPI was flat in November. Read the report.
Economists surveyed by MarketWatch were expecting the CPI to fall by 1.4%. They forecast that the core CPI would rise by 0.1%. See Economic Calendar.
Energy prices declined by a seasonally adjusted 17%, the most since February 1957. Gasoline prices plunged by 29.5% in November, the most since the government began keeping records in February 1967. Fuel oil prices dropped by 7.2%. Commodities prices declined by 4.1% in November.
The CPI data is one of the last pieces of the economic puzzle that the Federal Reserve will have to mull before its announcement about interest rates later Tuesday. The policy-making Federal Open Market Committee is almost universally expected to cut its target for overnight interest rates to 0.5% from 1%….”

Citigroup CEO announces bank will eliminate 52,000 jobs over the next year.

Nov. 17 (Originally published by Bloomberg) (Read whole article, click here)Citigroup Inc. Chief Executive Officer Vikram Pandit said the bank will eliminate 52,000 jobs over the next year, twice the target announced last month, as loan losses surge and the economy shrinks.

The reductions, disclosed at a meeting with employees in New York, include 9,100 positions the bank began eliminating in October and about 16,900 announced today. Citigroup will shed a further 26,000 positions through asset sales, 7,900 more than in the previous plan. The total represents 15 percent of Citigroup’s workforce of about 352,000.

Pandit, 51, is accelerating cost cuts after the bank’s stock price plunged 19 percent last week amid concern a global recession will curb new lending just as more home and credit- card loans are becoming delinquent. With bad-loan costs running $4 billion above last year’s levels, profits remain elusive following four straight quarterly losses.

“G 20″ World Leaders meet in Washington D.C. to discuss global response to worst worldwide financial crisis in over 70 years.

The following is an excerpt from an article found here at Reuters today:

By David Lawder and Emmanuel Jarry

“WASHINGTON (Reuters) – World leaders pledged rapid action on Saturday to rescue a weakening global economy from the worst financial crisis in over 70 years and agreed to give emerging nations more say in running financial affairs.

The Group of 20 leaders from major industrialized and developing countries set out plans to toughen oversight for major global banks, study limits on banker pay and try for a breakthrough by year end in global trade talks — all part of a roadmap to rebuild a financial system crippled by the credit crisis.

“We must lay the foundation for reform to help ensure that a global crisis such as this one does not happen again,” they said in a statement after their first-ever summit.

They vowed to make progress before a second summit by the end of April.”

The New York Times reported on the global financial emergency “G20″ summit, here.

Sun Microsystems CFO says company will cut 1500 to 2500 US jobs this quarter.

“Sun Chief Financial Officer Mike Lehman [also] said the company will cut 1,500 to 2,500 jobs. The company had 34,400 employees at the end of the quarter.”……”The U.S. economy presented Sun with significant challenges in the third quarter, masking our progress in developing nations and economies across the world,” said Chief Executive Jonathan Schwartz in a statement.

Sun reported a net loss of $34 million, or 4 cents per share, a decline from net income of $67 million in the year-earlier quarter; the figure includes charges of about 4 cents per share from the acquisition of open-source database company MySQL. Revenue decreased $17 million to $3.266 billion, a notch below the $3.4 billion expected by analysts surveyed by Thomson Financial.

In after-hours trading, Sun’s stock dropped $2.48, or 15 percent, to $13.85.”

DHL shipping company to cut 9,500 U.S. jobs, focus ‘entirely on international offerings.’

DHL to Cut 9,500 U.S. Jobs

DHL said it would significantly reduce its air and ground operations in the United States and cut 9,500 jobs within the country. It said it would discontinue U.S. domestic-only air and ground products on Jan. 30 to focus entirely on its international offerings. The decision could greatly scale back a possible venture between Deutsche Post‘s DHL and UPS….” (click here to read article).

U.S. jobless ranks zoomed past 10 million last month! Highest in 25 years. :(

“The nation’s jobless ranks zoomed past 10 million last month, the most in a quarter-century, as piles of pink slips shut factory gates and office doors to 240,000 more Americans with the holidays nearing. Politicians and economists agreed on a painful bottom line: It’s only going to get worse….” (read article, click here)

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