WASHINGTON — U.S. manufacturing grew more slowly in October, hampered by weaker demand for exports and slower production at factories.
But companies ordered more goods, factories slashed their stockpiles and auto sales rose.
Those trends suggest manufacturing activity could rebound in coming months.
Tuesday’s data, which also showed a slight uptick in construction spending in September, point to an economy that is growing but remains too sluggish to lower the unemployment rate, which has been stuck at 9.1 percent for three consecutive months.
“Overall, economic conditions seem just about strong enough to avoid a recession but not strong enough to generate any meaningful growth,” said Paul Dales, senior U.S. economist at Capital Economics.
The Institute for Supply Management said Tuesday that its manufacturing index dropped to 50.8, down from 51.6 in September. Any reading above 50 indicates expansion.
Measures of production and new export orders fell.
Separately, the Commerce Department said builders spent slightly more in September on projects. A gain in spending on home construction offset declines in government projects. Still, the annual rate of spending is roughly half the $1.5 trillion that economists consider healthy.
