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Byline: IBD STAFF AND WIRE REPORTS
U.S. factories expanded for a third straight month in April, but at a slower pace.
The tepid factory data and comments from Treasury Secretary Paul O'Neill sent the dollar lower. That'll cheer manufacturers who gripe they've been hurt by the strong U.S. currency.
Also, construction spending in March slid 0.9%, the first drop since September, amid falling public sector outlays.
Wednesday's report from the Institute for Supply Management, formerly NAPM, showed a slow factory rebound that'll likely keep the Federal Reserve from raising interest rates any time soon.
A drop in new orders pushed its manufacturing index in April down to 53.9 from 55.6 in March. Wall Street expected 56. Any reading above 50 suggests growth in the factory sector.
The new orders index, a gauge of demand for factory goods and a clue to output in coming months, fell to 59.0 from 65.3 in March. But ISM said it was still strong enough to drive growth over the next several months.