Factory activity up again

NEW YORK — Activity at the nation’s factories increased for a 20th consecutive month in January but the pace of expansion eased, reflecting sustained, moderate growth in the overall economy.

The Institute for Supply Management said Tuesday that its index measuring manufacturing activity declined to 56.4 in January, from a revised reading of 57.3 in December. The January figure was slightly below the reading of 57 anticipated by analysts.

Although the index declined, the fact that it remained above 50 indicates that the sector continued to grow last month but at a somewhat slower pace. A reading of 50 or above in the index means the manufacturing sector is expanding, while a figure below 50 represents a contraction.

Economists said the reading shows the manufacturing sector continues to expand. But the growth is gradual, with the pace of new orders to plants slowing, despite a weak dollar that makes U.S. goods more competitive overseas.

“We are seeing consistent evidence that the economy is enjoying sustainable growth. It’s not extremely robust growth, but it does appear that the economy is probably going to continue to grow at a healthy pace this year,” said Gary Thayer, economist with A.G. Edwards & Sons Inc. in St. Louis.

In other economic news, the Commerce Department reported Tuesday that construction spending jumped by 1.1 percent in December, making last year the best for building activity since 1996. The December increase was the sector’s best showing in eight months, a sign of robust activity in both private and public sector building projects.

For the year, building activity increased 9 percent to $998.4 billion, the largest increase since a 10.4 percent rise in 1996.