P.M. BRIEFING : Purchasers See Another Drop

The economy contracted in January for the fourth straight month and at the fastest rate since the middle of the last recession, the National Assn. of Purchasing Management said today.

The group, which surveys purchasing managers in more than 300 companies, said its monthly index fell to 37.7% in January from 40.5% in December. The index first fell below 44% in October--44% is the threshold that shows the economy is shrinking--and has remained below that level ever since.

The January index was at its lowest since May, 1982, when the index touched 35.5%. The last recession began in 1981 and lasted through November, 1982.

“The economy marked the new year by registering a worsening decline in the recession,” said Robert Bretz, chairman of the group’s Business Survey Committee. “All indicators confirmed the anemic condition of the economy, except for the continued strength in new export orders.”