Manufacturing Probably Shrank as U.S. Slump Hit 70-Year Record

[seemslikeadream]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aswB9vNg7OPw&refer=home


April 1 (Bloomberg) -- U.S. manufacturing probably shrank further in March, a report may show today as the recession enters its 17th month and becomes the longest since the 1930s.

The Institute for Supply Management’s factory index was at 36 last month, compared with 35.8 in February, according to the median of 74 estimates in a Bloomberg News survey. Readings less than 50 signal contraction. Another report may show companies cut more than 600,000 jobs for a fourth month.

The recession that began in December 2007 will probably continue until at least late this year, according to Federal Reserve projections. With sales tumbling at manufacturers from General Motors Corp. to Ingersoll-Rand Co. to steelmaker Nucor Corp., an industrial rebound is also unlikely for months, analysts said.

“The downturn in global growth and some other nagging headaches are going to create headwinds” for an economic recovery, said Zach Pandl, an economist at Nomura Securities International Inc. “Even if you do see slightly slower contraction in some areas of manufacturing, the level of activity is still falling, and at a decent rate.”