Tightening credit and housing market woes are weighing on the economy, according to the National Association for Business Economics' industry survey of its members. Still, the survey found that skilled labor continued to be in short supply. One-third of respondents cited skilled labor as a shortage in the survey released Friday compared with 40% in July's survey. However, only 32% of firms were boosting wages in the third quarter, down from 42% in the second.

"The October NABE industry survey found that business activity, capital spending, and hiring slowed in the third quarter in response to tightening credit conditions and a rapidly deteriorating housing market," said Sara Johnson, managing director of Global Insight, one of those who did the analysis for the report. "The housing market outlook turned from bad to worse: an overwhelming 98% of respondents expect a further slowdown in housing activity, and 54% expect the slowdown to be substantial."