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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (308458)	11/1/2006 11:34:27 AM
From: tejek	Respond to of 1573719

They are lying again steve.....trying to get the GOP to lose this fall. Haven't you told us that this is the best economy in 15 years? There is no way that manufacturing could be slowing! Manufacturing sector growth slows in October Wednesday November 1, 10:50 am ET NEW YORK (Reuters) - Growth in U.S. factory activity fell to its lowest in more than three years in October, a survey showed on Wednesday, in another sign of a slowing economy that could prompt an interest rate cut next year.</b. The Institute for Supply Management said its index of national factory activity fell to 51.2 in October -- the lowest since June 2003 -- from 52.9 in September. A Reuters survey of economists had produced a median forecast for a slight rise to 53. A reading above 50 indicates growth in manufacturing. Treasury debt prices rose on the data, with the yield on the benchmark 10-year note (US10YT=RR) falling to 4.57 percent, a near four-week low. Stocks (^DJI - News) were flat, while the dollar (EUR=) (JPY=) slipped against major currencies. "There's infection from the residential construction sector crash into the broader economy. The Fed remains in denial, thinking that such a big construction bust can remain hermetically sealed off from the rest of the economy," said Richard Iley, senior economist at BNP Paribas in New York. "The broader economy is now slowing and slowing sharply. We expect pressure on the Fed to think about cutting rates to begin to build although we're not quite there yet." The prices paid index, which measures inflationary pressure in the factory sector, dropped to 47.0 from 61.0 in September. This was the lowest since February 2002. New orders, a gauge of future growth, dropped to 52.1 from 54.2, while the employment index edged up to 50.8 from 49.4. Analysts said the ISM index would likely have to fall below the 50 break-even level before the Federal Reserve could start easing monetary policy. "The (Federal Reserve) should be more ready to cut than otherwise though I am not predicting one this year," said Robert MacIntosh, chief economist at Eaton Vance Management in Boston. The U.S. central bank has kept its benchmark overnight federal funds rate steady at 5.25 percent since August, having raised it 17 times from June 2004 to June 2006. biz.yahoo.com