Mixed economic reports can't lift fog on recovery

The Institute for Supply Management said Wednesday its manufacturing index rose to 56.3 in August from 55.5 in July. A reading above 50 indicates growth.

Manufacturing has helped lead the economy out of the worst recession since the 1930s. The trade group's index has surged since late 2009 and hit a six-year high in April. But as economic growth has slowed this summer, expansion in the manufacturing sector has leveled off.

Construction activity dropped 1 percent in July, the third straight monthly decline, the Commerce Department said Wednesday. Government revisions showed much weaker activity than previously reported for May and June.

The July construction decline pushed building activity down to a seasonally adjusted annual rate of $805.2 billion. That's 10.7 percent below the pace of a year ago and the lowest level since July 2000.

SpendingPulse's figures show shoppers spent more on children's clothing and consumer electronics than last August. But they pulled back on women's and men's fashions and luxury goods. In fact, spending in August on many types of nonessentials remained about where it was five years ago.

A fuller picture of how retailers fared in August is due today, when chains like Macy's and Target report their revenue at stores open at least a year.

The Institute for Supply Management said Wednesday its manufacturing index rose to 56.3 in August from 55.5 in July. A reading above 50 indicates growth.

Manufacturing has helped lead the economy out of the worst recession since the 1930s. The trade group's index has surged since late 2009 and hit a six-year high in April. But as economic growth has slowed this summer, expansion in the manufacturing has leveled off.

Construction activity dropped 1 percent in July, the third straight monthly decline, the Commerce Department said Wednesday. Government revisions showed much weaker activity than previously reported for May and June.

The July construction decline pushed building activity down to a seasonally adjusted annual rate of $805.2 billion. That's 10.7 percent below the pace of a year ago and the lowest since July 2000.

SpendingPulse's figures show shoppers spent more on children's clothing and consumer electronics than last August. But they pulled back on women's and men's fashions and luxury goods. In fact, spending in August on many types of nonessentials remained about where it was five years ago.

A fuller picture of how retailers fared in August is due today, when chains like Macy's and Target report their revenue at stores open at least a year.