US factory output rises, but construction falls

US factory output rises, but construction falls WASHINGTON -- U. Consumers increased their spending in February by the most in seven months, the government said Friday. Spending on home building, office construction and government projects all fell. The weak report shows that the building industry is still struggling more than two and a half years after the recession ended. Stocks rose after the reports were issued. Many economists expect growth will slow in the current quarter because companies aren't likely to restock their shelves as much as they did in the fourth quarter. 5 percent, from 2 percent. . And a measure of prices that manufacturers pay dipped slightly but remained high, pointing to rising costs for raw materials, such as oil, copper and plastics. The survey found that the factory growth was widespread. Increasingly confident U. That suggests manufacturers will need to increase output to meet higher demand. Greater demand for machinery, computers, autos and aircraft drove the increase. Orders for so-called "core" capital goods, a key measure of business investment plans, also rose. The ISM's survey found that new orders are increasing, but at a slightly slower pace than in February. An index tracking export orders dropped sharply, but remained in expansionary territory. A recovery in auto sales has been a big reason for the strength in manufacturing. cars to record highs. Broader indexes also rose. And manufacturers said their customers are reporting low inventories, which suggests they are likely to keep ordering new goods. All of those indicators suggest production should stay healthy in the coming months. Consumer spending on long lasting goods, such as cars and computers, rose 1. Businesses also ordered more durable goods in February, after a steep drop the previous month, a separate report last week showed. They've added more than 100,000 jobs in the past three months, about one-seventh of all net gains. A gauge of production rose to its highest level in three months in March. 4 in the previous month. That's up from 52. Readings above 50 indicate the sector is expanding. A measure of manufacturing employment rose to a nine-month high, a sign that factories are hiring more workers. US factory output rises, but construction falls Trade News selected by Local Linkup on 03/04/2012