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To: farkarooski who wrote (64397)	8/1/2002 12:48:46 PM
From: Softechie	Respond to of 208838

I want to hear GWB coming out saying economy is strong...another facking liar...oops he's politician...it's OK now....hehehehehehehh Manufacturing Activity Grew At Much Slower Rate in July A WALL STREET JOURNAL ONLINE NEWS ROUNDUP WASHINGTON -- Manufacturing activity grew at a much slower rate in July as a slump in new orders brought the sector perilously close to contraction, according to a closely watched survey of purchasing managers. Separately, construction spending fell in June to its lowest level in nearly two years, as spending dropped in all major construction categories. The new data, released Thursday, followed a government report out the day before that showed the economy grew at a 1.1% rate in the second quarter, well off the blistering pace of 5% growth set in the first quarter. Economic Growth Slows Far More Than Expected In the manufacturing sector, the Institute of Supply Management said Thursday that its index of activity fell to 50.5 in July, marking a sixth consecutive month of expansion but at a much slower pace than expected. In June, the closely watched gauge came in at 56.2. Economists were expecting a July reading of 55.0, according to Thomson Global Markets. Readings above 50 indicate expansion of activity and prices in the manufacturing sector, while readings under 50 denote contraction. The deceleration in overall activity was driven by a slide in new orders for manufactured goods and production levels. The new orders index slipped to 50.4 in July from 60.8 in June, while the production index fell to 55.7 from 61.4 in June. "Comments from purchasing and supply executives reflect a wide range of concerns," the ISM report. "Some indicate that business is improving, but the question is whether it will continue. Others are experiencing declines and question whether we have hit the bottom." Declines in employment for manufacturers accelerated in July, with the employment index dipping to 45 in July from 49.7 in June. Meanwhile price pressures for manufacturing input costs continued to push higher in July, with that index hitting a heady 68.3, up from 65.5 in June. Construction Spending Falls 2.2% Total construction spending fell 2.2% to a seasonally adjusted annual rate of $820.8 billion, the Commerce Department said Thursday. May construction spending fell 2.0%, revised from an original report of a 0.7% decline. Private construction expenditures fell 1.9% in June after a revised 3.3% fall in May. Within that category, residential construction spending fell 0.9%, matching its May losses. Spending on private nonresidential construction, such as office buildings, fell 3.4% in June after a 4.9% drop in the previous month. Spending in this category fell to its lowest level since September 1996, the report said. Public construction spending fell by 3.1% in June, as the nation cut back on roads, sewer systems and schools. This followed a 2.1% gain in May. Total construction spending was down 3.7% on a year-over-year basis. The fall in construction spending follows mixed housing-market data released recently. Sales of new, single-family homes rose to a record level in June, but sales of existing homes plunged nearly 12% in the same month. Jobless Claims Rise According to a separate report, jobless claims rose last week for the first time in three weeks, underscoring the view that the labor market remains weak. Initial jobless claims rose by 20,000 to 387,000 in the week ended Saturday, the Labor Department said Thursday. Claims for the prior week were revised upward by 5,000 to 367,000. The latest increase surprised economists, who had expected to see 373,000 claims filed, according to a survey by Thomson Global Markets. A Labor Department statistician said, however, that initial-claims numbers tend to fluctuate greatly at this time of year. "This is a perfect example why we suggest looking at the four-week moving average as an indicator," said the statistician, Thomas Stengle. The average, which softens weekly fluctuations, increased by 250 claims to 386,000. The Fed on Wednesday described the labor market as "slack but relatively stable." Updated August 1, 2002 12:36 p.m. EDT