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Factory Free Fall Ended Last Month, But Terror Attacks' Impact Pending.(A)

Investor's Business Daily

| October 02, 2001 | COPYRIGHT 2001 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

Byline: Donald H. Gold

A key report on factories Monday revealed signs of stability, though the full impact of the Sept. 11 attacks had yet to be felt.

The National Association of Purchasing Management's business activity index fell to 47.0 in September from 47.9 the previous month.

More important than the slight dip was the fact that it was the 14th straight month below the boom-bust 50 level -- that's 14 straight months of contraction.

But the report held mixed signals -- proof of existing problems and hints better times were near, at least until Sept. 11.

"The report indicates both continuing decline in manufacturing as has been the trend since August 2000, and the recent gains in production and new orders which appeared to provide a basis for recovery," the NAPM said.

Split Survey Period

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