I bet the GOP is glad they picked a nominee who admits he knows nothing aboutthe economy.

American factories saw demand for their products drop sharply, while the country’s service sector contracted, fresh evidence of an economy hobbled by housing and credit crises.

The Commerce Department reported Wednesday that new orders for manufactured goods fell 2.5 percent in January from the previous month. That marked a deterioration from December’s 2 percent increase and was the biggest decline in five months.

Meanwhile, activity in the nation’s service sector shrank in February for the second straight month.

The Institute for Supply Management’s service sector index clocked in at 49.3. A reading below 50 indicates a contraction. In January, the index stood at 44.6.