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Mixed Signals

9:52 AM MDT | June 30, 2008 | Arnold Pearlman

Production in the manufacturing sector continued to fall at the beginning of the second quarter. Output dropped 0.8% in May, after a 1.4% drop in the first quarter and a 0.6% decline in the fourth quarter of last year. Production of chemicals declined 0.1% in April, after falling 2% for the entire first quarter. Capacity utilization levels are shrinking along with lower output, which will likely result in smaller capital spending budgets in coming months, analysts say. Shipments of manufactured products rose 2.2% in April, although analysts say that inflation...

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