October 03, 2006	Tuesday	Ramazan 9, 1427

WASHINGTON, Oct 2: US manufacturing grew at a cooler pace in September but still reflected steady overall growth, a survey by the Institute of Supply Management showed on Monday.

The widely tracked ISM index of national industrial activity eased to a weaker-than-anticipated 52.9 per cent in September from 54.5 per cent in July.

“The manufacturing sector continues on a trend of slowing growth in September,” said ISM survey Chief Norbert Ore.

Any reading over 50 indicates growth, so the report suggests continuing expansion in the industrial economy despite the decline in the headline number.

Most Wall Street economists had forecast that the index reading would fall to 53.5 per cent.

Several critical components to the report showed declines last month.

A key inflation gauge in the report -- the prices paid index -- fell to 61 per cent from 73 per cent, the ISM said.

The employment index also fell in September, to 49.4 per cent from 54 per cent a month earlier.

“It's apparent that manufacturing is losing momentum and feeling the effects of higher interest rates and a weaker housing market,” Ore said.

“While there was little change in new orders and production when compared to August, significant slowing took place in employment and inventories,” he added.

The inventories index dropped to 46.4 in September from 50.2. —AFP