Manufacturing shrinks in August, inflation slows

NEW YORK — U.S. manufacturing activity slipped in August and construction spending dropped to the lowest level in seven years in July as consumer spending and housing show no signs of reviving. The Institute for Supply Management said Tuesday its reading for the nation’s manufacturers fell to 49.9 from 50 in July. The August number met economists’ prediction of a reading of 49.9, according to the consensus estimate of Wall Street economists surveyed by Thomson/IFR. A reading below 50 signals contraction. For the full story visit www.latimes.com/business/la-fi-econ3-2008sep03,0,2845445.story