Manufacturing growth slackens while construction spending rises (AP)

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Manufacturing growth slackens while construction spending rises

By Madlen Read
THE ASSOCIATED PRESS
10/03/2006

NEW YORK — A pair of indicators offered a mixed picture of the economy Monday as growth slowed among U.S. manufacturers, while commercial construction showed surprising resilience. Hurt by weaker auto sales and a slumping housing market, the manufacturing sector expanded in September at the slowest pace in more than a year, a trade group said.

A big gain in commercial construction spending, however, was enough to offset a decline in house building in August, the Commerce Department said. Construction spending edged up 0.3 percent to a seasonally adjusted annual rate of $1.20 trillion, the best showing in five months.

The dreary manufacturing report had a stronger effect on markets Monday than the rosier construction data: the dollar fell, Treasury bonds rallied and stocks slipped after nearing all-time highs.


The reports are two of many that the Federal Reserve will look at to gauge whether the economy is slowing too fast -- a decision it must make Oct. 25, when it meets to either raise interest rates, lower them, or leave them unchanged.

(more at link) <http://www.stltoday.com/stltoday/business/stories.nsf/0/A1959CF52A43A5D1862571FC00076157?OpenDocument>

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