Economic activity in the manufacturing sector expanded again in April, climbing for the 95th consecutive month, The Institute for Supply Management said on Monday.
The U.S. manufacturing index hit 54.8 for the month of April, still expanding but posting a decrease of 2.4 percentage points from its previous reading. Economists had expected the index to fall slightly to 56.4 in April after hitting 57.2 in March, according to Thomson Reuters consensus estimates.
Of the 18 manufacturing industries surveyed by the ISM, 16 reported growth in April, including electrical equipment, appliances and components, and textile mills, the data showed.
"Comments from the panel generally reflect stable to growing business conditions; with new orders, production, employment and inventories of raw materials all growing in April over March," the ISM wrote in its monthly update.
A reading above 50 percent on this index indicates the manufacturing economy is generally expanding; below 50 percent indicates it's generally contracting.
U.S. construction spending
Elsewhere, the Commerce Department announced March U.S. construction spending on Monday that slipped from all-time highs.
The group said construction spending slipped 0.2 percent in March to a seasonally adjusted $1.218 trillion, while economists expected spending to grow by 0.4 percentage points for the month, according to Reuters estimates.
Spending last climbed by 0.8 percentage points in February, its highest level since April 2006.
The small decline in March reflected drops in nonresidential construction and in the government sector, which offset a strong increase in residential activity, the Commerce Department said.
Residential construction was up 1.2 percent to the highest level since June 2007. Nonresidential building fell 1.3 percent in March as spending on office buildings and the category that covers shopping centers both fell.
Meanwhile, government activity dropped 0.9 percent, driven by weakness in the state and local levels.
—The Associated Press contributed to this report.
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