ISM Factory Index Falls to 56.4 in January

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he Institute for Supply Management said Tuesday its factory index for January slowed to 56.4 from 57.3 in December.

The index has shown expansion, marked by readings greater than 50, since June 2003. The manufacturing sector is one of trucking’s largest and most important customers.

Economists forecast a reading of 57, Bloomberg reported. One analyst said that after last year’s 60.5 level, the highest since 1973, the economy's growth could slow in 2005, Bloomberg said.

ISM’s new orders index, which accounts for about a third of the total, dropped to 56.5 in January from 62.6 in December. The production index, a gauge of work being performed, rose to 57.8 in January from 56.7 in December.

The employment index increased to 58.1 in January, from 53.3 in December. The index of inventories rose to 44.5 from 44, ISM said.

The backlog of orders index declined to 50.5 from 54 in December, ISM said. The new export orders index fell to 56.9 in January from 59.1.

The index of supplier deliveries, which measures how long it takes to get materials, fell to 53.7 from a seasonally adjusted 56.1 in December.

ISM surveys more than 400 companies in 20 industries, including transportation, clothing, printing, furniture and plastics.

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