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More Bad News for US Economy

A flurry of reports Tuesday shows problems for the U.S. economy in the services, retail, factory, and housing sectors.

Services make up the vast majority of the world's largest economy, but were hit hard in December as consumers cut spending and housing slumped.

However, the industry group the Institute for Supply Management that tracks the data says December's figures showed the services sector shrinking at a slower rate than the prior month.

Retail sales are also troubled. Big discounts following the Christmas holiday, December 25, had consumers shopping for bargains, but were not enough to help retailers salvage a disappointing holiday shopping season. An industry group, the International Council of Shopping Centers, says sales fell almost one percent last week, compared to the same time last year.

Other reports Tuesday show U.S. factory orders falling sharply and pending home resales off sharply in November.

Some information for this report was provided by AFP, AP and Reuters.