After historic Obama victoryÔÇöwhat now for the economy?

Only now that itÔÇÖs happened is it safe to say that the┬áonly surprise about Barack ObamaÔÇÖs victory in the US Presidential election was the size of his winning margin.  Most people, even Republicans who dared not contemplate such a thing, most likely knew in their heart of hearts that yesterday belonged to Obama, long before the figures were added up.┬á┬á  At his victory rally, president-elect Obama said he had received an "extraordinarily gracious" call from his rival Senator John McCain, and praised the former Vietnam prisoner-of-war as a "brave and selfless leader," who had ÔÇ£endured sacrifices for America that most of us cannot begin to imagine." ┬á┬á Magnanimous words all round, then, from two gentlemen most recently known for speeches intended to cut each other to shreds.┬á┬á But Obama has much to think about before he takes office in January, and he will need all the help he can get. "Even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime ÔÇô two wars, a planet in peril, the worst financial crisis in a century,ÔÇØ he said. ÔÇ£The road ahead will be long. Our climb will be steep. But America ÔÇô I have never been more hopeful than I am tonight that we will get there." ┬á┬á And then thereÔÇÖs the economy. The fact that Democrats have made strong gains in both houses of Congress will undoubtedly make ObamaÔÇÖs job less difficult than it might otherwise have been, but no-one dreams it will be easy.┬á┬á Figures released from the Institute for Supply Management Monday showed US manufacturing slipping to its lowest level for 26 years. ┬á┬á The institute's index of national factory activity fell to 38.9 from 43.5 in September. A score of less than 50 represents a contraction in manufacturing, and October's score is the lowest-recorded since September 1982. ┬á┬á Every sector surveyed, apart from clothing and electronic products, reported a contraction for the month. Export orders also fell for the first time after 70 consecutive months of growth. ┬á┬á With public sector borrowing out of control, the irony is that the US economy has been ravaged under the very party that stands for business and free markets. We shall have to wait and see whether it can be saved by the party that has traditionally favored government spending to bring about a fairer society.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á