Manufacturing slows for third straight month

Monday, Dec. 2, 2002 | 9:42 a.m.

NEW YORK -- U.S. manufacturing activity contracted in November for third consecutive month, reflecting softness in new orders, a private industry group said today.

The Tempe, Ariz.-based Institute for Supply Management said its index of business activity was 49.2 in November, a slight improvement from the 48.5 reading in October, but still below 50. A reading above 50 signals the manufacturing sector is growing; a reading below 50 suggests the sector is contracting.

Analysts had forecast a reading of 51 for the month. The last time the index was above 50 was in August.

Separately, U.S. construction spending rose in October for a second straight month as home building increased, the Commerce Department reported today.

Spending increased 0.2 percent to $834.578 billion after rising a revised 0.3 percent in September.

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