Wednesday, February 6, 2008

Evidence mounts that economy is in recession

Kevin G. Hall | McClatchy Newspapers

last updated: February 05, 2008 07:48:49 PM

WASHINGTON — Stocks fell sharply Tuesday amid new economic data that left Wall Street ever more convinced that the U.S. economy might already be in recession.

The three major stock indices all closed down by about 3 percent, after an Institute of Supply Management report showed a much-weaker-than-expected reading of the all-important services sector.

The report also showed that prices for items that the nonmanufacturing sector uses are rising briskly. This combination of a contraction in business activity and rising prices unsettled investors.

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