U.S. Manufacturing Shows Signs of Slowing

The nation’s busy manufacturing industries eased a notch in June, purchasing managers reported. The downturn in the closely watched purchasing managers’ index to 55.7 from 57.1 in May--accompanied by falling prices--complemented a separate Commerce Department report that May construction spending had faltered. A third report, from the private Conference Board in New York, showed little or no likelihood of a downturn developing as the forward-looking index of leading indicators rebounded 0.3% in May to 103.8 after a 0.1% April fall. Analysts said the reports show that the economy is slowing on its own from a blistering 5.9% annual rate of growth in the first quarter, making it unlikely that the Federal Reserve Board will boost interest rates as its two-day meeting concludes today.