A new report released today shows that service sector activity shrank in November, while jobless claims dropped for the fifth week to 457,000 new claims. However, it is expected that the government report on Friday will announce a loss of 130,00 jobs in November. With the service sector index number at 48.7, signaling an economic contraction and the increase in labor productivity without job or wage increases, many analysts fear that claims of economic recovery may have come too soon.
See "Service Sector Activity, Retail Sales Disappoint", The New York Times, December 2, 2009