Manufacturing in the U.S. grew at the slowest pace in seven months in October as factories received fewer orders and production cooled, economists said before a report today.
The Institute for Supply Management's manufacturing index fell to 51.5 from 52 the prior month, according to the median of 81 economists surveyed by Bloomberg News. A reading greater than 50 signifies expansion. A separate report may show consumer spending rose at a slower pace in September.
Manufacturing is on the verge of stalling as the deepening housing slump weakens demand for construction equipment, furniture and appliances, economists said. Overseas growth and a weaker dollar are boosting exports at firms including DuPont Co. and Agco Corp., helping avert a broader factory slump.
``The manufacturing sector continued to lose momentum in October,'' said Peter Kretzmer, a senior economist at Bank of America Corp. in New York. ``Amid heightened uncertainty about the economic outlook, firms are taking care to avoid excessive inventory accumulation.''
The Tempe, Arizona-based group's report is due at 10 a.m. New York time. Forecasts ranged from 50 to 53. Manufacturing accounts for about 12 percent of the economy.
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