Reports Show Economic Strength

Manufacturing activity remained strong in September and construction spending surged to a record high in August, according to two reports issued Friday that provided an optimistic look at the economy.

The Institute for Supply Management said its manufacturing index registered 58.5 in September, down from 59 the previous month and slightly higher than the 58.3 reading forecast by analysts.

A reading of 50 or above means the manufacturing sector is expanding; a figure below 50 represents a contraction. The index has been above 50 since June of last year.

“Both new orders and production remain strong, and employment growth has accelerated,” said Norbert J. Ore, chairman of the group’s manufacturing survey committee.

Also Friday, the Commerce Department reported that construction spending jumped 0.8% in August to a seasonally adjusted annual rate of $1.02 trillion, reflecting continued strength in the housing market.

The increase was double what economists had forecast.

The generally upbeat manufacturing and construction reports contrasted somewhat with the University of Michigan’s index of consumer confidence for September, also released Friday. That reading declined to 94.2 last month from 95.9 in August.