
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, November 2, 1993                   TAG: 9311020093
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

GAINS SHOW IN 2 REPORTS

Construction spending rose in September for the fifth straight month, marking the longest string of advances in more than six years; and the nation's manufacturing sector grew in October for the first time since May, according to a survey of corporate purchasing managers released Monday.

"It's good news," said economist David F. Seiders of the National Association of Home Builders. "It's all coming together."

The Commerce Department said Monday that residential, nonresidential and government outlays totaled $471.3 billion at a seasonally adjusted annual rate, up 0.8 percent from $467.4 billion in August, contributing to the longest series of gains since January-through-May 1987.

They also helped boost spending in September 8.7 percent above that of September 1992.

Residential spending rose 0.9 percent, the fifth consecutive advance. Outlays for single-family homes jumped 1.7 percent, nearly matching a 1.9 percent increase in August. Spending on multifamily buildings, however, fell 2.7 percent after a 3.4 percent drop a month earlier.

Nonresidential spending fell 1 percent following a 2.3 percent advance in August. Outlays for office buildings plunged 5.2 percent. But spending on industrial buildings jumped 3.5 percent.

Government outlays rose 1.7 percent in September after a 0.9 percent decline a month earlier. Spending on streets and highways shot up 6.8, but military projects were down 8.3 percent.

The National Association of Purchasing Management's index rose to 53.8 percent, up sharply from 49.7 percent in September. It was the first increase after four months of decline and the highest monthly rate since 55.8 percent in February.

A figure above 50 percent generally indicates the manufacturing sector is expanding, while a figure above 44.5 percent over a period of time generally indicates the entire economy is expanding.

The group said new orders surged in October after a scant increase in September, posting the highest rate of growth since January. Production rose at its highest level since March, the survey showed.

by CNB