Production Slowed At Factories In October

But companies ordered more goods, factories slashed their stockpiles and auto sales rose. Those trends suggest manufacturing activity could rebound in the coming months.

The data, which also showed a slight uptick in construction spending in September, points to an economy that is growing but remains too sluggish to lower the unemployment rate, which has been stuck at 9.1 percent for three consecutive months.

The Institute for Supply Management said Tuesday that its manufacturing index dropped to 50.8, down from 51.6 in September. Any reading above 50 indicates expansion.

Measures of production and new export orders fell. A gauge of employment dipped but remained strong enough to signal that factories were adding workers.

“Over all, economic conditions seem just about strong enough to avoid a recession, but not strong enough to generate any meaningful growth,” said Paul Dales, senior United States economist at Capital Economics.

Separately, the Commerce Department said builders spent slightly more in September on projects, the second consecutive monthly increase. A gain in spending on home construction offset declines in government projects. Still, the annual rate of spending is approximately half the $1.5 trillion that economists consider healthy.

A report in China showed that manufacturing grew at the slowest pace in nearly three years in October, partly because of weak export orders.

“Manufacturing is feeling a chill wind from a generally weaker global economic environment, and this is unlikely to change anytime soon,” said Joshua Shapiro, chief United States economist at MFR Inc.

Factories were among the first businesses to start growing after the recession officially ended in June 2009. The manufacturing sector has grown for 27 straight months, according to the index.

Despite slower growth in American manufacturing, economists were encouraged by details in the I.S.M. report, released by a trade group of purchasing managers.

An index measuring new orders rose to 52.4, the first time it has topped 50 in four months and the highest reading in six months.

Manufacturers also said their stockpiles fell sharply. That means that factories will have to increase output to meet any increase in demand.

And the prices that manufacturers paid for raw materials fell sharply, indicating that inflation pressures are dissipating. The prices index plummeted from 56 to 41, the lowest point since April 2009.

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