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THE ECONOMY.(A)

Investor's Business Daily

| March 04, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

U.S. home price rise slows in Q4

Average home prices rose 0.83% from Q3, the smallest gain in more than five years, the Office of Federal Housing Enterprise Oversight said. But just three states saw average prices decline in Q4 vs. 7 in Q3. Prices rose 6.89% from Q4 '02, the smallest year-over-year rise since Q4 '99.

Manufacturers see sluggish '03

In a National Association of Manufacturers survey, 80% of about 300 firms surveyed say GDP will grow no more than 2% in the 1st half and pick up only marginally in the 2nd half. With costs rising and growth and exports stalled, three-fourths think the U.S. factory sector is in crisis. Three-fourths plan to boost capital spending 5% or less this year.

Euro zone factory activity up a bit

The Reuters Eurozone Purchasing Managers' Index rose to 50.1 in Feb. from Jan.'s 49.3, above the boom-bust 50 level for the first time since Aug. New orders in Germany hit a two-year high. But the jump was driven in part by stockpiling ahead of a possible war. Jobs fell for a 21st straight month.

** The British factory ...

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