Drop in manufacturing mirrors slow business spending

The Federal Reserve on Monday reported that U.S. manufacturing rose only 0.1 percent in September, according to Reuters, down from a 0.5 percent gain in August.

The drop in output is attributed to a fall in the production of electronic goods. A separate report released last week showed business spending also slowed in September.

These reports, combined with disappointing reports on home sales and employment, indicate third-quarter economic activity was weaker than anticipated.

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