Manufacturing Shows Slower Growth

A survey of purchasing managers released Monday showed that the U.S. manufacturing sector has continued to grow in January, but did so more slowly than it had in the previous month.

The Institute for Supply Management said its factory index was 53.9 in January, down slightly from the 55.2 it posted in December. Despite the decline, the index was still over the break-even figure of 50. Readings above 50 indicate expansion in the manufacturing sector.

Manufacturing is a major customer of the trucking industry, which relies on shipping orders from factories and stores for much of its business.

The ISM also revised its data for the final few months of 2002. The revisions showed that the second-half manufacturing slump was not as bad as previously reported. The new figures show that manufacturing contracted in October only, instead for three straight months from September to November.

Economists had expected the index to dip in January, but only to 54, Bloomberg News reported.

Analysts said that the string of months where manufacturing grew may indicate that manufacturing may be subsiding.

In a separate report released Monday, U.S. construction spending grew by 1.2% to $858.3 in December, the Commerce Department said. It was the fourth straight increase in construction spending.

Residential spending continued to be strong, analysts said, helping to keep propping up the economy during past year. On the downside, spending on commercial construction spending was weaker in December, Commerce reported.