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Growth, Price Data Lift Hopes The Fed Will End Hikes Soon; Stocks Jump, But Bonds Dip; Inflation in comfort zone; factories remain strong, shoppers slow somewhat.(A)

Investor's Business Daily

| December 02, 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: LAURA MANDARO

The U.S. economy got a little trim, and investors loved the new look.

Growth eased slightly while inflation pulled back into the Fed's comfort zone, according to a slew of reports out Thursday.

Economists zeroed in on the Institute for Supply Management's November manufacturing index for the most up-to-date snapshot of the economy.

The ISM index fell 1 point from October to 58.1, but edged past estimates. New orders and production, while slowing, also showed solid growth. Readings above 50 indicate expansion.

The U.S. factory report confirmed earlier regional surveys that showed industry recovering from the Gulf Coast hurricanes.

Comfortable Inflation

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