November 1, 2007 (LPAC)--Reflecting the U.S. economy's continuing disintegration, the Institute for Supply Management's factory index dropped to 50.9 today, down from 52 in September, and the lowest in seven months.

The decline is attributed to the lower demand for construction equipment, furniture and appliances, as a result of the housing market collapse and credit crunch.

At the same time, consumer spending rose by 0.3% in September, below the 0.4% that had been forecast.