[Adam in CO]

Last Week in the News In October, overall construction activity dropped 1% to a seasonally adjusted annual rate of $1.18 trillion, the Commerce Department reported December 1. It was the biggest decline since a similar 1% drop in September 2001. Residential construction fell 1.9%, marking the seventh straight monthly decline, the longest stretch of weakness on record.
The nation's manufacturing sector shrank for the first time in three years, the Institute of Supply Management (ISM) reported December 1. The ISM's manufacturing index registered 49.5 in November, following October's reading of 51.2. A reading below 50 indicates contraction.
The number of Americans filing new unemployment claims for the week ending November 24 rose by 34,000, surprising many economists who expected jobless claims to fall slightly.
Better economic news came on November 27 from the National Association of Realtors, which reported that existing home sales unexpectedly rose by 0.5% to a seasonally adjusted rate of 6.24 million units in October, the first increase since February.
Rates on 30-year mortgages dipped to their lowest level since January, Freddie Mac reported November 30. Economists attributed the third straight weekly decline in rates to easing inflation pressures as the economy slows.
Finally, the Commerce Department reported November 29 that the economy grew by 2.2% in the third quarter, a sizable upgrade from the government's preliminary estimate of 1.6% growth.
This week look for updates on factory orders on December 5 and unemployment on December 8