U.S. Economy: Manufacturing Points to ‘Modest’ Growth

U.S. manufacturing expanded at a slower pace, while consumer spending increased, underlining the Federal Reserve’s forecast for a “modest” pace of economic growth in coming months.

The Institute for Supply Management’s factory index dropped to 54.4 in September from 56.3 the prior month, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth. Consumer purchases increased 0.4 percent in August for a second month, more than forecast by economists.