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Show B-11 The Park Record Wed/Thurs/Fri, April 5-7, 2006 Manufacturing expands in March (New York AP) Manufacturing expanded in March but at a slower rate, while February construction spending rose to a record level, together signaling continued strength in the overall economy despite some evidence of inflation. The Institute for Supply Management said Monday its manufacturing index registered 55.2 last month compared with 56.7 in February. Readings above 50 indicate the sector is expanding; those below 50 indicate manufacturing activity is shrinking. Economists had projected a reading of 57.7. The sector's growth, characterized by strength in new orders to factories and in production, came despite concern among manufacturers about the prices for raw materials, particularly for energy and metals, ISM said. Also Monday, the government reported that construction spending rose to a record level in February as home building hit an all-time high. The 0.8 percent increase to a seasonally adjusted annual rate pf $1,185 trillion, came despite a weakening in home sales. That topped the 0.5 percent increase expected by analysts, and signals that building will likely continue to fuel economic growth through the year, as strong commercial building activity makes up for the slowing housing market. Taken together, the fresh data are "certainly consistent with an economy growing at a good pace, maybe something at or slightly above the long-term average ... but Meanwhile, an index measuring with inflationary pressure maybe starting to bubble up," said Patrick prices jumped to 66-5 from 62.5 in Fearon, senior economist with February, a sign that costs to manA.G. Edwards & Sons Inc. in St. ufacturers are increasing • more rapidly. Louis. That figure will leave Federal Stocks rose following release of the reports. Jn midday trading, the Reserve policymakers and the Dow Jones industrial average investors who watch them guessgained 122.22, or 1.1 percent, to ing, said John Silvia, chief econo11,231.54. The Nasdaq composite mist with Wachovia Corp. It is index rose 14.20 to 2,353,99. The unclear how long manufacturers Standard & Poor's 500 increased can continue to absorb increases in their costs without raising tjieir 12.65 to 1,307.48. ' Despite the decline in the man- prices. That creates inflationary ufacturing index, analysts said it pressure, meaning the Fed is reflects continued strength in the unlikely to back away from raising interest rates again in May, Silvia sector. After robust growth in February credited to relatively said. warm weather, the March reading Of the 20 manufacturing secappears to signal a return to a tors tracked by ISM, 15 reported more normal rate of expansion, growth. They include miscellaclose to the average of 55.4 that neous manufacturing, apparel, texthe index has shows in the past 12 tiles, petroleum, industrial and months. commercial equipment and com"Manufacturing is in good puters, printing and publishing, shape. It's moving forward," said primary metals, transportation Joel Naroff of Naroff Economic and equipment, wood and wood Advisors in Holland Pa. "We're products, chemicals, electronic getting demand from the rest of components and equipment, fabrithe world. Backlogs are building cated metals, instruments and phostrongly. All of those things really tographic equipment, food and indicate that the manufacturing paper. sector has yet to skip a beat." The sector's growth, characterThe slowing pace of growth was ized by strength in new orders to reflected in several measures factories and in production, came taken by ISM. A sub-index meas- despite continued concerns among uring new orders to manufacturers manufacturers about high prices registered 58.4, down from 61.9 in for energy and metals, said Norbert February. Production was virtually J. Ore, chair of ISM's survey comunchanged, with a reading of 57.5 mittee. compared with 57.4 the previous "The first quarter is now commonth. ISM's measure of employ- plete, and the ISM data indicates ment in the sector declined to 52.5 that it was a good quarter for U.S. from 55.0. manufacturing," Ore said. "In gen- eral manufacturing continues to experience a significant level of growth." The 0.8 percent increase in construction spending was led by a 1.3 percent increase in home and apartment construction, which rose to a record level of $665,7 billion at an annual rate. Economists believe the housing sector, which has been booming for the past five years, will slow gradually this year under the impact of rising mortgage rates and slowing sales. New home sales posted a big decline in February while sales of existing homes have been down five of the past six months. Non-residential construction posted a strong 0.8 percent increase to an annual rate of $265.3 billion in February with gains posted in office ' buildings and hotels which offset a decline in commercial construction, a category that includes shopping centers. The increase pushed activity in the non-residential sector to an annual rate of $265.3 billion, the fastest pace since October 2001. Economists are looking for business spending on construction projects to help bolster the building sector this year as housing slows. Government construction edged down 0.5 percent in February to an annual rate of $254.4 billion. The decline reflected weakness in federal spending, which dropped 1.8 percent to a rate of $19.3 billion, and a 0.4 percent decrease in state and local construction spending, which dipped to an annual rate of $235.1 billion. Unspam responds to Free Speech Coalition • Continued from B-9 to help encourage those laws to be passed,11 he explained. "We started the company in 2004 with the idea of creating laws that would help people manage what material they wanted to come into their home and what material they didn't want to come into their home over new electronic communication media." Prince, an attorney and adjunct Professor at the John Marshall Law School in Chicago, started the company with Unspam COO and Genreal Counsel Benjamin Dahl, and Unspam CTO Eric Langheinrich. The three grew up in Utah, attending junior high school together, and moved the company to Park City in 2005. The company has grown to include 10 employees, and has plans to open registration of mobile phone numbers and instant messenger identifications in May. Utah residents and schools may register to receive protection for free by visiting www.kidsregistry.utah.gov. 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