Stark Signs of a Slowdown, Days Before Election - NYTimes.com

Less than a week before Americans go to the polls to select a president, a government report released Thursday showed that the economy contracted in the third quarter as consumer spending dipped for the first time in 17 years. Economists said the drop in economic activity presages more bad news in the months ahead. The impacts of a now-global financial crisis are continuing to squeeze companies and impede investment, prompting more layoffs and another wave of austerity. "The economy has taken a turn for the worse, big time," ..."Consumption literally caved in. It is a prelude to much worse news on the economy over the next couple of quarters. The fundamentals around the consumer are all negative, and there are no signs of any help anytime soon, from anywhere." In an election likely to be decided by the economy, the latest batch of dismal data offered no comfort to the Republican nominee, Senator John McCain of Arizona.