The U.S. economy continued to expand inFebruary, but at a slower pace than in January which saw a
spurt of activity, the National Association of Purchasing
Management (NAPM) said in a report.
    The Association's composite survey index declined to 51.9
pct in February from 55.8 pct in January, the NAPM said. It was
the seventh consecutive month in which this leading indicator
was over 50 pct.
    A reading above 50 pct generally indicates that the economy
is in an expanding phase. One below 50 pct implies a declining
economy.
    The report, based on questions asked of purchasing managers
at 250 U.S. industrial companies, also found that the growth
rate in new orders and production slowed in February.
    However, production remained vigorous as more than three
times as many members reported it better rather than worse.
    Vendor deliveries improved slightly last month, but members
reported that steel supplies were tight as U.S. Steel &lt;X>
gradually resumed production.
    An equal number of members reported inventories were higher
and lower. The NAPM said that had not happened since August
1984.
    For a sixth month, more purchasers reported paying higher
rather than lower prices, this time by a ratio of nine to one.
    Robert Bretz, chairman of the NAPM's business survey
committee and director of materials management at Pitney Bowes
Inc &lt;PBI> said "the economy continued to expand in February,
but at a more subdued rate than in January. The slowing of new
orders should not be significant enough to dampen prospects for
a respectable first quarter."
    The composite index is a seasonally adjusted figure, based
on five components of the NAPM business survey - new orders,
production, vendor deliveries, inventories and employment.
 Reuter
