Federal Report: Manufacturers Face Rough Times Ahead

By Jeannine Aversa, (we include some bullet items from her presentation)
-Retailers, homebuilders and many manufacturers (such as paper) should brace for even more rough times ahead, a somber.
- Federal Reserve suggests amid growing fears that the U.S. might be sliding into recession.
-Fed's snapshot of business conditions showed a national economy losing momentum heading into the New Year.
- Labor Department reported that U.S. consumer prices rose in 2007 at the fastest pace in 17 years; by 4.1 percent, as motorists paid a lot more for gasoline and food.
-Many banks reported losses and said people were having trouble making payments for everything from credit cards to cars.
- Stocks were mostly down for 2008.
-Beginning of last year, many economists put the chance of a recession at less than 1-in-3; now an increasing number say 50-50.
-Retailers suffered their worst sales season in five years in 2007.
-Risky ''subprime'' mortgages continued to sock financial institution.
Federal Reserve Chairman Ben Bernanke pledged to aggressively cut a key interest rate.
-White House and the Democrat-controlled Congress are exploring ways — including the possibility of temporary tax rebates — to get money quickly into the hands of consumers and help stimulate spending.
-Nation's unemployment rate went from 4.7 percent in November to 5 percent in December.
- Consumer confidence fell in January to its lowest point in figures dating back to 2002.