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Factory Growth Stalls, Personal Outlays Fall Amid War, Oil Worries ISM Feb. Index Off To 50.5 Meanwhile, shoppers cut auto purchases for Jan.; nondurables, services up.(A)
Byline: CHRISTINA WISE
Personal incomes crept higher in January while spending fell, the Commerce Department said Monday. Meanwhile, the recovery in the manufacturing sector slowed to a crawl last month.
The Institute of Supply Management's manufacturing index dropped to 50.5 in February. Readings above 50 indicate expansion, and February marked the sector's fourth straight month of growth.
But the reading was below January's 53.9 and forecasts of 52.5, a sign that growth has slowed.
"Supply managers are certainly being challenged by current business conditions," said Norbert Ore, survey chairman. "While volumes seem to fluctuate, prices are rising on many commodities, pushed by higher energy prices."
The index's new orders component dropped to 52.3 from 59.7 in January, while production softened to 55.4 from 56.3.
The order backlog rose to 49 from 45 in January. Prices paid jumped to 65.5 from 57.5.
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