NATION

NATION
Manufacturing sectormarks July expansion
NEW YORK -- In the first sign the U.S. economy is coming out of its recent stall, the manufacturing sector expanded at a respectable rate in July on strong orders and higher production rates.
The Institute for Supply Management said Monday its manufacturing index registered 62.0 last month, up from 61.1 in June. It was the 14th consecutive monthly increase and was in line with the consensus forecast of analysts.
An index reading above 50 indicates expansion, and one below 50 indicates that manufacturing activity is contracting. The gauge has been above 50 since June of last year.
American Airlines dropsfare-increase proposal
FORT WORTH, Texas -- American Airlines has given up on its proposed fare increases after some carriers declined to match the increases on all their seats. American is following United Airlines' lead in making a new round of price cuts on select routes.
The latest failed fare increase began late last week when American, the largest U.S. carrier, announced it was raising prices on domestic flights by $5 one-way and $10 on round trips. American, a unit of AMR Corp., said it needed to raise fares because of the high price of jet fuel.
Associated Press