Manufacturing activity in the U.S. contracted for the third straight month, an industry group said Wednesday in yet another indication the economy is cooling.
The National Association of Purchasing Managers said its production index fell to 48.3 percent in October, down from the 49.9 percent level recorded in September. October’s figure also was below analysts’ forecast of 49.5 percent. An index below 50 signals a slowing manufacturing economy, while a reading above 50 suggests expansion. October marked the third straight month of contraction for the purchasing index after 18 months of growth.
In a separate report, the government said spending for offices and factories hit all-time highs. The Commerce Department said overall spending on U.S. construction projects surged 2.4 percent in September to an annual rate of $819.3 billion, the second-highest level on record.
The mixed reports may keep the inflation-wary Federal Reserve on alert for signs that the pace of economic growth may begin to heighten as the year draws to a close.
