WASHINGTON (AP) - U.S. factories were slightly less busy in November, as production and hiring slowed, though the level of activity remained strong.<br />
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The Institute for Supply Management, a trade group of purchasing managers, said Monday that its manufacturing index slipped to 58.7 last month from 59 in October. Any reading above 50 signals expansion. October's figure matched a three-year high reached in August.<br />
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Manufacturing has been a key driver of growth this year, as Americans have ramped up their purchases of autos and electronics.<br />
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A measure of new orders rose and order backlogs jumped, both signs that output will likely remain strong in the coming months. A gauge of hiring dipped, but still pointed to solid job gains among manufacturing firms.<br />
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Overall, recent manufacturing reports have been mixed. Businesses ordered fewer big-ticket manufactured goods in October, and orders in a key category reflecting business investment plans fell for the second straight month.<br />
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That's raised concerns that economic growth could slow in the final three months of this year. The economy expanded at a 4.25 percent annual rate in the April-June and July-September quarters. That was the best six months of growth for the U.S. economy since 2003.<br />
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But there have been recent signs that growth is slowing. Consumer spending rose only modestly in October. Many economists now forecast growth will slide to a 2.5 percent rate in the current October-December quarter.<br />
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Hiring has been healthy this year, helping propel the economy. Employers had added an average of 229,000 jobs a month this year, up from 194,000 in 2013. That has helped lower the unemployment rate to 5.8 percent, a six-year low, down from 7.2 percent 12 months ago.<br />
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But the additional jobs have yet to spur meaningful wage growth.
