Job Losses Up - Worst is Ahead

Unemployment claims are well into recession territory. They are rising even faster than expected. Thursday, leading economists warned that the worst is yet to come.

According to the Labor Department, new applications for unemployment insurance rose 15,000 last week to a seasonally adjusted 478,000. This was above the analysts' estimates of 470,000. It is considered a sign of recession when jobless claims get about 400,000.

Overseas Demand is Likely Behind Factor Orders

Orders to factories for big ticket manufactured goods jumped unexpectedly in December, good news amid signs that the U.S. economy may be tipping toward a recession. I don't think this is going to help though. Analysts said the 5.2 percent growth in orders, while potentially boosting industrial output in coming months, likely came from overseas demand and that domestic growth faced continuing threats from tight credit and mortgage markets that have forced consumers to retrench.

Recession Expected to Strike in 2008

Five economic stocks will send U.S. manufacturing into a mild recession in 2008, according to a new report from an undustrial trade group. But the situation should get better in 2009 if the housing market rebounds and helps stimulate the economy. Daniel Meckstroth, chief economist for the Arlington, VA-based Manufacturers Alliance, said that while the next 12 months should provide a formidable challenge, he thought new housing starts should improve significantly in 2009.