Sun, Apr 03, 2005 - Page 11 News List

US economy may be overheating

BOOMTIME Soaring business activity in service industries last month has analysts worried that the economy is growing too fast, though other sectors are sluggish

AP , NEW YORK

The ISM's manufacturing report said that 16 industries reported growth in March; activity was level in tobacco and petroleum, while the paper industry reported decreased activity.

Norbert J. Ore, head of the group's survey committee, said the March number was boosted by strong readings in new orders and inventories.

"The manufacturing sector maintained its strength in March, finishing the first quarter in a relatively strong position," Ore said in a statement accompanying the report.

He said, however, that a strong rise in prices -- include those for petroleum products -- "continues to present a problem for manufacturers."

The new orders index advanced to 57.1 in March from 55.8 in February, while manufacturers' inventories -- a measure of anticipated order demand -- rose to 54.1 in March from 48.6 the month before. The index's price gauge shot up to 73 in March from 65.5 the previous month.

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