Manufacturing, Personal Spending Took Big Hits After Attacks

The Sept. 11 terrorist attacks took a bigger toll on U.S. manufacturing activity than had been estimated, according to a report released Thursday. Consumer spending also took a plunge.

The National Association of Purchasing Managers' manufacturing index fell to 39.8 in October from 47, a worse reading than expected for one of the first clean pieces of data since the terrorist attacks.

The index is now at its lowest level since February 1991, the tail end of the last recession. Of particular concern was the component that tracks new orders, which fell sharply after posting two straight months of improvement.

The index has now been stuck below 50, the level indicating a contraction, since August of 2000.

A separate report said personal consumption expenditures fell 1.8% in September, the biggest monthly fall since January 1987, while personal income was unchanged.