Utah economy lags — for now

The reading reflects an increased rate of growth in new orders and a slowing rise in prices paid by manufacturers for raw materials. At the same time, high energy costs and a strong dollar continue to weigh on the sector, ISM said.

Of the 20 industry sectors tracked by the group's survey, 13 reported growth in June, including petroleum, textiles, food, miscellaneous, wood and wood products, furniture, instruments and photographic equipment, industrial and commercial equipment and computers, rubber and plastic products, chemicals, electronic components and equipment, printing and publishing and primary metals.

The ISM reading is "a real good number," said Joel Naroff of Naroff Economic Advisors in Holland, Pa. "What we saw in the first few months of this year was manufacturing was leveling off. It wasn't slowing. It was leveling off. I think this report says it's still in very good shape."

Also Friday, the Commerce Department reported that construction spending fell by 0.9 percent in May, the third consecutive monthly decline.

The drop to a seasonally adjusted annual total of $1.1 trillion surprised economists, who had been forecasting a 0.5 percent increase in spending.

Stocks closed higher following release of the reports. The Dow Jones industrial average gained 28.47, or 0.3 percent, to close at 10,303.44. The Nasdaq composite index rose 0.41, essentially unchanged, to 2,057.37. The Standard & Poor's 500 index rose 3.11, or 0.3 percent, to 1,194.44.

For the week, the Dow gained 0.05 percent, the S&P rose 0.24 percent and the Nasdaq climbed 0.2 percent.

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E-mail: jnii@desnews.com