Manufacturing activity weakened in all districts in December. Similar data was found in a report released earlier in the day from the National Association for Business Economics.
Profit margins remain under pressure, and goods producers now seem to be in recession.
The report on inflation for December, also released Wednesday, was the only bit of economic sunshine. Prices were pumped up by higher energy costs last summer. The relatively small inflation increase for December gave hope to those who want the Federal Reserve Board to cut interest rates at its next meeting Jan. 30 and 31, following up on a surprise cut earlier this month. The Fed cuts rates to stimulate economic growth. You really won't see a meaningful rebound until the second half of the year.