Oct. 3 (Bloomberg) -- U.S. stocks erased losses after reports on manufacturing industries and construction spending topped economists estimates, tempering concern the economic recovery was in jeopardy.
The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,132.27 at 10:01 a.m. in New York after slumping as much as 0.9 percent before the manufacturing data.
The Institute for Supply Management’s factory index rose to 51.6 in September from 50.6 the prior month, the Tempe, Arizona- based group said today. A reading of 50 is the dividing line between expansion and contraction in manufacturing. Construction spending in the U.S. unexpectedly rebounded in August, climbing 1.4 percent, Commerce Department figures showed.
The S&P 500 slipped 0.4 percent last week as the sovereign debt crisis in Europe and fears of a global slowdown overshadowed improving economic reports in the U.S. The S&P 500 tumbled 14 percent in the third quarter, the worst drop since the three months ending December 2008. The index declined in nine out 13 weeks during the quarter. For the year, the S&P 500 was down 10 percent through Sept. 30.
To contact the editor responsible for this story: Michael P. Regan at firstname.lastname@example.org