NAPM Hits Lowest Reading Since 1991 Recession

January's Purchasing Manager's Index, or PMI, hit its lowest level since March 1991, when the U.S. was last in a recession. The index hit 41.2 in January, well below the 43.6 expected by economists and also below December's reading of 43.7.

Any reading on the PMI below 42.7 signals that the overall economy is contracting.

Though it is not as important part of the economy as it once was, manufacturing is the sector that has suffered most drastically in recent months. And some credit the last PMI report for the Federal Reserve's surprise intermeeting rate cut early last month. ...