Reports show modest, but steady economic growth

NEW YORK (AP) — Mixed reports today on manufacturing, construction and personal income and spending made clear that the economy is enjoying modest growth even though the recovery remains fragile.

Manufacturing output expanded in February for a seventh straight month. Factory output has provided one of the few areas of strength for the economy. Still, the growth in manufacturing activity slowed compared with January and fell short of economists' expectations.

In addition, construction spending fell for a third straight month in January. And though personal spending rose slightly more than expected, Americans' incomes scarcely budged. In part, that was because Social Security recipients didn't get their usual cost-of-living boost.

The weak income growth could depress spending in the months ahead and drag on the economy's rebound.

The Institute for Supply Management, a trade group of purchasing executives, said its manufacturing index read 56.5 last month. That was slower than the 58.4 reading in January. A reading above 50 indicates expansion.