Washington, DC, October 2, 2006--Factory activity in the United States decelerated in September, the Institute for Supply Management reported Friday.
The ISM index fell to 52.9% in September from 54.5% in August. This is the lowest level since May 2005.
The decline was sharper than expected. Economists had forecast of estimates the index to fall to 53.7. Readings above 50 indicate expansion.
New orders fell to 52.9% in September from 54.5% in August.
The employment index dropped to 49.4% from 54.0%.
The price index dropped sharply to 61.0% from 73.0%. This is the lowest level since July 2005.
