by Calculated Risk on 2/05/2008 09:43:00 AM

From the WSJ: Service-Sector Activity Contracts

Service sector activity contracted sharply in January for the first time since March 2003.

... the Institute for Supply Management reported that its January nonmanufacturing index moved to a reading of 41.9, from December's 54.4.

...The report showed still problematic inflationary pressures in the non-manufacturing sector, with the prices index at 70.7, from the prior month's 71.5.

The employment index for January came in at 43.9, from December's 51.8.

The report also said that the non-manufacturing new orders index stood at 43.5. It was 53.9 in December.

It couldn't be much worse.