By Lucia Mutikani –
NEW YORK (Reuters) – U.S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years while construction spending barely rose in December, pointing to some loss of steam in the economy.
Economists largely blamed frigid temperatures for the chill in economic activity and said they expected a rebound in the months ahead. However, they also cautioned that the economy was receiving some payback after a strong performance in the second half of 2013.
“The disappointing data provide further confirmation of a dramatic slowing in economic growth momentum,” said Millan Mulraine, deputy chief economist at TD Securities in New York.
The Institute for Supply Management (ISM) said its index of national factory activity fell to 51.3 last month, its lowest level since May 2013, from 56.5 in December.
