Manfacturing Contracts, Construction Spending Falls

[Purveyor]

12/1/2006 10:13 AM ET

WASHINGTON (AP) — Two economic reports showed marked weakness Friday in the nation's manufacturing sector and construction.

A trade group says the nation's manufacturing sector contracted in November for the first time in more than three years. And the government reported that construction activity in October plunged by the largest amount since the recession in 2001 as home building fell for a record seventh consecutive month.

The Institute for Supply Management said its manufacturing index registered 49.5 in November, down from October's reading of 51.2. A reading below 50 indicates that manufacturing activity is contracting.

The last time the sector contracted was in April 2003.

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Also Friday, the Commerce Department said building activity dropped 1% to a seasonally adjusted annual rate of $1.18 trillion in October following a 0.8% fall in September. It was the biggest decline since a similar 1% drop in September 2001, a month when the country was hit by terrorist attacks as it was mired in a recession.

http://www.usatoday.com/money/economy/2006-12-01-ism-construction_x.htm?POE=NEWISVA