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Chicago Factories Weaken,
But Survey Hints Of Hope
1The Chicago Purchasing Managers index rose to 43.5 in August from July's dismal 38.0. That's still the 11th straight reading below the boom-bust 50 level, meaning the region's manufacturing activity has been shrinking all that time. But the production and new orders subindexes both improved. While they're still below 50, the gains imply some stability is coming into this hobbled sector. The employment subindex rose to 33.7 from 32.3. That small rise doesn't mitigate expectations of more job cuts.See Vital Signs on A2
Fed Sees Economic Impact
From Broad Capital Gains
2Federal Reserve Chairman Alan Greenspan said capital gains from stocks and homes will have a powerful influence, but that current measures of that impact are inadequate. His remarks underscored the importance of the wealth effect -- the impact of rising stock and housing values on consumer spending. The wealth effect is said by many to have kept the consumer going despite the economic slump.
Factory Orders Improved