Notes: Manufacturing sends mixed signals

New home sales are up. New car sales are down. And those aren't the only data sending mixed signals about the strength of the U.S. economy. Two closely watched indicators are sending very mixed signals about manufacturing. With its Purchasing Managers' Index standing at 48.3% in October, the National

Assn. of Purchasing Management (NAPM), Tempe, Ariz., figures that U.S. manufacturing has failed to grow for three consecutive months. The index was 49.9% in September and 49.5% in August, and a mark below 50% indicates the manufacturing sector is contracting, says NAPM. However, the Federal Reserve Board's latest "beige book"so-called because of its cover color-finds U.S. manufacturing "generally steady, with only a few areas of continuing weakness." High tech, despite Wall Street's investment disfavor, is still expanding, says the Fed. In the Midwest, overall manufacturing is growing, and on the West Coast, aerospace, semiconductor, and pharmaceutical industry sales were rising in October. Oil refineries were operating near capacity in the Northeast and in Texas. On the downside, paper and lumber-mill production was slowing and inventories rising. As imports increase, steel production is slowing and pricing is softening. Heavy-duty truck makers continue to cut back production as new orders weaken. And the downsizing of the apparel industry continues.