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News > Economy
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Manufacturing improving
graphic February 1, 2002: 10:52 a.m. ET

Key gauge posts third straight rise but still short of pointing to growth.
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  • Special Report: 2002 World Economic Forum
  • Special Report: Eyes on the Fed
  • Fed leaves interest rates alone -- Jan. 30, 2002
  • Unexpected growth in 4Q U.S. GDP -- Jan. 30, 2002
  • Economists split on U.S. recovery -- Jan. 31, 2002
  • Manufacturing index rises past expectations -- Jan. 2, 2002
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  • Institute for Supply Management
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    NEW YORK (CNN/Money) - A key gauge of manufacturing activity rose for the third straight month in January, the nation's purchasing managers said Friday, indicating the troubled sector is poised to pull out of its year-and-a-half long slump.

    The Institute for Supply Management said its widely watched index rose to 49.9 from 48.2 in December. Analysts surveyed by Briefing.com had forecast a reading of 50, which points to expansion in the sector. A reading below 50 points to contraction. Manufacturing accounts for about a fifth of the nation's economy.

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      It is encouraging that the rate of decline has slowed to its lowest measurable level.  
         
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      Norbert Ore
    ISM chairman
     
    "While the manufacturing sector experienced a decline in January, it is encouraging that the rate of decline has slowed to its lowest measurable level," ISM Chairman Norbert Ore said in a statement.

    The measure from the group, formerly known as the National Association of Purchasing Management, is watched closely by economists since it offers an early reading on the health of manufacturing. The group surveys purchasing executives who buy everything from cardboard to computer chips for about 350 companies.

    Eight industries showed improvements in new orders in January, the group said, including leather, wood and wood products, instruments and photographic equipment, and transportation.

    The report came after the government said unemployment fell to 5.6 percent last month, leading many economists to believe that the worst is over for the economy.

    On Wall Street, stocks were mixed after the reports.

    For more on the Fed and rates, click here

    Growth in the nation's economy in the fourth quarter and other signs of recovery prompted the Federal Reserve to hold rates steady after cutting short-term interest rates 11 times last year in a bid to boost consumer and business spending and give the economy a lift.

    Manufacturers have been the hardest hit by the downturn in the economy, which slid into a recession in March. But Friday's report and other recent data indicate that the worst may be over for the sector, analysts say. graphic

      RELATED STORIES

    Special Report: 2002 World Economic Forum

    Special Report: Eyes on the Fed

    Fed leaves interest rates alone -- Jan. 30, 2002

    Unexpected growth in 4Q U.S. GDP -- Jan. 30, 2002

    Economists split on U.S. recovery -- Jan. 31, 2002

    Manufacturing index rises past expectations -- Jan. 2, 2002

    Consumer confidence, durable goods orders rise -- Jan. 29, 2002

      RELATED LINKS

    Institute for Supply Management





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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