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U.S. Factory Growth Slowest Since 2003, ISM's Index Shows; Oil Rallies Back Above $50; Index falls for 5th month, but 23-mo. string over 50 is the longest in 16 years.(A)

Investor's Business Daily

| May 03, 2005 | COPYRIGHT 2005 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: KIRK SHINKLE

Factory activity fell again in April for a fifth straight month, offering another variation on the U.S. economy's dominant theme: slower, yes, but still growing.

The Institute for Supply Management's manufacturing index slid to 53.3 from 55.2 in March. That's the lowest since July 2003. New orders hit lows not seen since May 2003. Analysts had expected the index to stay nearly flat.

Readings over 50 signal growth.

"There's a general deceleration in the manufacturing growth rate going into the second quarter," said Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI.

Monday's news also means no last-minute surprises ahead of Tuesday's Fed meeting. Central bankers are seen adding a quarter-point to interest rates for an eighth straight meeting, hiking rates from 2.75% to 3%.

Oil prices have been a major factor in recent months restraining producers and consumers.

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