Reports Signal Slowdown Wall Street Applauds Signs Of Slower Growth, Low Inflation

Growth in the manufacturing economy slowed in September, according to a private report Wednesday that helped calm worries that the economy is overheating.

The stock and bond markets rose on the news and on separate economic reports that also were weaker than expected.

The Dow Jones industrial average gained 70.24 points to close at 8,015.50, its first finish above 8,000 in six weeks.

In one of the first reports on the economy’s strength in September, the National Association of Purchasing Management said its index measuring the industrial economy slipped to 54.2 percent last month from 56.8 percent in August. But its inflation component rose in August, indicating higher prices for the commodities purchased by manufacturers.

The monthly report by the organization of executives who purchase supplies and raw materials for business, is closely followed as an early indicator of the economy’s current strength.

Separately, the Conference Board said its Index of Leading Economic Indicators rose 0.2 percent in August to 104.3 from 104.1 in July. The index, designed to forecast changes in the economy’s direction, had increased 0.3 percent in July following a 0.1 percent rise in June and 0.2 percent rise in May.

The leading index is a composite measure of 10 previously reported economic indicators. Over the six months through August, it increased 0.9 percent. During the same period, six of the 10 leading economic indicators advanced.

In a third report Wednesday, the government said construction spending fell 0.3 percent in August, the third drop in four months, reflecting decreases in office building, shopping centers and government projects.

The reports indicated the economy remains strong. Any reading over 50 percent in the purchasing managers’ index is a sign of expanding manufacturing.

There have been worries among economists that the economy had been growing so rapidly that it would overheat, pushing up inflation. The Federal Reserve decided Tuesday to leave interest rates unchanged rather than stepping on the brakes.

The U.S. markets will get another peak at the domestic economy on Friday with the release of job-creation and unemployment statistics for September.