More Bad Economic News: Factory Orders Take Big Dive

Something is definitely wrong with the economy. First you had a big stock market plunge now its production:

The economy is still caught between slowing growth and stubborn inflation pressures, new government reports showed Tuesday.

Labor costs, boosted by bonuses to high-income workers, soared at the end of last year, raising inflation worries, while factory orders plunged in January by the biggest amount in 6 1/2 years.[...]For all of 2006, productivity rose by 1.6 percent, the slowest annual increase in nine years.

Ironically, the stock market was not concerned by the news of a productivity slowdown.