Manufacturing, housing continue to sag

The manufacturing sector headed downward in November as the economy continued to weaken under the weight of the financial crisis, according to a report by the Institute for Supply Management in Tempe, Ariz. The ISM manufacturing index fell to a reading of 36.2 in November, which marked the lowest reading since May 1982. The larger-than-expected drop from a reading of 38.9 in October highlighted the affect that the weakening economy is having on manufacturing. Economists surveyed by Chicago-based Briefing.com had expected the index to fall to 37. Index readings that come in below 50 indicate that the sector is contracting. The index that measures the cost of raw materials fell 11.5 points to a reading of 25.5, which marked the lowest reading for the index since May 1949. In another report, construction spending fell 1.2% in October, outpacing the 0.3% decline in September. The October figure was down 4.6% from October 2007. Housing construction fell 3.5% in October, while non-residential construction fell 0.7%.