Forecasters: U.S. in 14 month recession

By Burton Frierson Burton Frierson –

Mon Nov 17, 1:39 pm ET

NEW YORK (Reuters) – The U.S. economy fell into a recession last spring and will contract sharply this quarter as more than 200,000 workers per month are added to the rolls of the unemployed, a survey said on Monday. The Philadelphia Federal Reserve's latest Survey of Professional Forecasters removed some of the glow from an earlier report showing industrial output rebounded in October after hurricane disruptions produced a stunning fall in September.

Early data from the factory sector also supported the grim view of the forecasters, showing manufacturing in New York state tumbled in November to yet another record low.

EU: Euro-zone in recession

By AOIFE WHITE and PAN PYLAS,

AP Business  – Fri Nov 14, 10:22 am ET

BRUSSELS, Belgium – The 15 countries that use the euro are officially in a recession, the European Union said Friday, as their economies shrank for a second straight quarter because of the world financial crisis and sinking demand.

The euro zone shrank 0.2 percent in both the third and second quarters from the quarter before, further stoking expectations the European Central Bank will cut interest rates to limit the economic damage. Two successive quarters of shrinkage is one common definition of a recession.

The spending slowdown and tight credit conditions have industry hurting across the continent: carmakers, a major source of exports in countries like Germany, said sales are slumping. Car sales in October slumped 14.5 percent in October from the previous year, the sixth consecutive monthly fall, the ACEA industry association said.

The worry is that the sharp reining in of personal spending will push the jobless rate much higher in the months to come. So far, euro-zone economies — with 16 percent of world output and 319 million people — have not seen unemployment surge, though the EU executive Commission estimates that it will rise steadily over coming months.

Global stocks tumble as Japan falls into recession

Mon Nov 17, 4:59 pm ET

NEW YORK (AFP) – Global stocks saw heavy selling Monday as news that Japan fell into recession and US banking giant Citigroup's announcement of 50,000 job cuts heightened fears of a deep global crisis.

Dealers said hopes that a Group of 20 meeting of developed and developing nations in Washington on Saturday would produce concrete action were disappointed, with leaders only calling for greater coordination.

Japan's economy contracted 0.1 percent in the third quarter after 0.9 percent in the second, putting it in recession for the first time in seven years. Worse still, with the eurozone and Japan in recession and the United States likely to follow suit, this is the first time since World War II that all three regions have been in retreat together, noted Barclays Capital analyst David Woo. Highlighting the woes, Citigroup said Monday it would cut 50,000 jobs as it struggles with the financial crisis and four consecutive quarterly losses.