Manufacturing, Spending, Personal Income All Rise

U.S. manufacturing grew for a third straight month in April, the National Assn. of Purchasing Management said Monday, but economists said the pace of production was not strong enough to revive inflation.

In further signs of a robust economy, Americans’ personal income and spending rose again in March, although at a slower pace than in February. Construction spending grew for the fifth straight month.

Major auto makers reported another month of strong U.S. sales, boosted by consumers confident enough to take on increased debt.

* The NAPM said its closely watched manufacturing index stood at 52.8 in April, down from 54.3 in March, falling short of economists’ forecast for a reading of 55. A reading above 50 suggests growth while a level below 50 implies contraction.

Economists said the rise in the NAPM employment index to 49.5 in April, from 48 in March, could foreshadow some growth in manufacturing employment.

* Consumer spending rose 0.4% in March as incomes increased by 0.4% to $7.383 trillion, the Commerce Department said. The gains followed a revised 0.8% personal spending increase and a 0.5% personal income rise in February.

* Spending on construction projects rose 0.5% in March, despite a decline in commercial building, the Commerce Department said.

* Ford Motor Co., the No. 2 auto maker, said its sales rose 7% in April from a year ago.

DaimlerChrysler’s Chrysler unit said total sales improved 2%, boosted by a 6% increase in car sales. Truck sales were flat.

Toyota Motor Corp. posted its best April ever in the U.S., with sales up nearly 10%. Honda Motor Co.’s sales grew 4%.

General Motors Corp. is scheduled to report its sales today