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It's not that manufacturers are over producing which implies an increase in supply. Instead, it's that demand is decreasing because consumers are afraid to spend money. According to the economic model of supply and demand, with supply being constant, if demand decreases then market equilibrium occurs at a lower price.
source(s):
http://instruct1.cit.cornell.edu/courses/econ101-dl/lecture-supply&dema...
http://en.wikipedia.org/wiki/Supply_and_demand
http://instruct1.cit.cornell.edu/courses/econ101-dl/lecture-supply&dema...
http://en.wikipedia.org/wiki/Supply_and_demand
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Manufacturer orders are up.
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