Manufacturing growth slows, construction slips

NEW YORK -- Manufacturing activity grew more slowly in July and jobless claims were up, according to reports released Thursday, underscoring an economy struggling to fully recover from last year's recession and the Sept. 11 attacks.

The Institute for Supply Management reported that its index of business activity slipped to 50.5 percent in July from 56.2 percent in June. It was the sixth straight month of growth, but it fell below analysts' expectations of 55.0. An index above 50 signifies growth in manufacturing.

Construction spending, meanwhile, declined 2.2 percent in June from the previous month, the Commerce Department reported Thursday. That pushed down the value of construction projects to $820.8 billion, the lowest level since August 2000.

Senate panel weighs removal of Saddam

WASHINGTON -- A Senate panel Thursday wrestled with the question of whether the United States should force Saddam Hussein from power -- especially given the high costs taxpayers could face in supporting a new Iraqi government.

The committee completed two days of hearings exploring whether an invasion is needed and what its consequences would be.

Committee Chairman Joseph Biden said he hoped the hearings would stir debate in Congress and among the American public. No administration officials were asked to participate, but Biden said he may invite them to appear before the panel later this year.

Witnesses at the Senate hearings have generally agreed that Saddam's development of weapons of mass destruction pose a serious risk. But there have been differences about whether the threat could be ended only by military action.

Some stay, others flee as Oregon wildfires burn

CAVE JUNCTION, Ore. -- Crews torched brush and other potential fuel Thursday to try to keep two major wildfires from advancing toward homes in a southwestern Oregon valley.

Nearly 1,000 of the valley's 17,000 residents have left their homes since Sunday, but Bob Bell said he was staying put.

"I've got a pond in back that's 7 feet deep, and I'm going to jump in it" if the fire comes, Bell said, using a fire hose to douse the grass beside his house.

Billboard collapses kills three at shopping center

SNELLVILLE, Ga. -- A 35,000-pound billboard collapsed at a suburban Atlanta shopping center Thursday, killing three construction workers who were crushed by the falling steel.

A fourth worker was pulled from the wreckage and hospitalized in good condition, authorities said.

The billboard, roughly 30 by 60 feet, was under construction when it collapsed just before noon at the shopping center. It crashed onto two cars and into the side of a one-story building below. No one else was hurt.

Faulty sensor causes girls' deaths in elevator

FREEHOLD, N.J. -- A safety mechanism was taped over and not working when two little girls were killed in an elevator in a multimillion-dollar home, authorities said Thursday.

Someone taped over the sensor that would have kept the car from operating with the gate open, Monmouth County Prosecutor John Kaye said.

The victims of Wednesday night's accident were identified as Arelia Franco, 7, and her sister, Nanci, 6.

--From wire reports