IBD'S TOP 10.(A)

Factories Slowed In June,

But Worst Could Be Over

1The National Association of Purchasing Management's index of manufacturing activity rose to 44.7 in June from 42.1 in May. It was the 11th straight monthly reading below 50, which reflects contraction. But it was the highest reading in seven months. The production indexes all rose, but are all under 50. The inventories index shows the much-needed inventory correction is proceeding apace. The survey gives hope the worst is over, but a quick rebound isn't likely. And the prices paid index fell to 42.3, the lowest in more than two years.More on A7

Spending Eclipsed Income

Despite Wobbly Economy

2Personal income grew 0.2% in May while spending rolled ahead 0.5%. April's income gain was revised lower to 0.2% from 0.3%. The slowdown has cut into income growth, with wage and salary income taking a hit from the manufacturing sector. But consumers seem reluctant to buy less. With the savings rate at -1.3%, households are borrowing more to maintain spending. Recent data show consumer debt, at uncomfortably high levels, may not be a source of buying power for much longer.See "Vital Signs" on A2

EU Casts Vote On GE Bid;