Prices May Have Tumbled as Economy Sank: U.S. Economy Preview |

Prices May Have Tumbled as Economy Sank: U.S. Economy Preview

Nov. 16 (Bloomberg) — The cost of living in the U.S. probably fell
in October by the most in almost sixty years, while manufacturing and
homebuilding sank deeper into a recession, economists said before
reports this week.

Consumer prices probably dropped 0.8 percent last month, the most
since 1949, according to the median estimate in a Bloomberg News
survey. Builders broke ground on the fewest houses in at least a half
century and factory output weakened further, other reports may show.

Commodity costs plunged in October when the economy, which descended
last quarter, went into freefall as credit and financial markets
collapsed. Slumping sales are forcing retailers to lower prices,
giving the Federal Reserve scope to keep cutting interest rates to
limit the damage.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTxtStJrKGr0&refer=home

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