US manufacturing index falls

0 Comments | AFP, October, 2006

WASHINGTON (AFP) — US manufacturing grew at a cooler pace in September but still reflected steady overall growth, a survey by the Institute of Supply Management has showed. The widely tracked ISM index of national industrial activity eased to a weaker-than-anticipated 52.9 percent in September from 54.5 percent in July.

"The manufacturing sector continues on a trend of slowing growth in September," said ISM survey chief Norbert Ore Monday. Any reading over 50 indicates growth, so the report suggests continuing expansion in the industrial economy despite the decline in the headline number. Most Wall Street economists had forecast that the index reading would fall to 53.5 percent. Several critical components to the report showed declines last month. A key inflation gauge in...