Manufacturing slows; consumer spending drops

WASHINGTON -- Manufacturing barely grew and consumers cut spending amid worries about a possible war with Iraq.

The Institute for Supply Management's index of manufacturing activity fell to 50.5 in February, a marked deterioration from January's reading of 53.9.

A level above 50 indicates the manufacturing sector is expanding; below 50 means it's contracting.

In a second report, the Commerce Department said consumers trimmed spending by 0.1 percent in January -- the first such rollback in four months.