US Manufacturing Growth Slows; Construction Spending Falls

Source: REUTERS

The pace of U.S. manufacturing growth slowed in April as the sector expanded only modestly, an industry report showed on Wednesday. A separate report showed that construction spending fell in March.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.7 from 51.3 in March, coming in below expectations for 50.9. A reading above 50 indicates expansion.

In a sign of potential resiliency, the forward-looking new orders component edged up to 52.3 from 51.4, while production improved to 53.5 from 52.2.

But employment fell to 50.2 from 54.2, boding poorly for the Labor Department's national unemployment report due on Friday.

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