U.S. factories experienced milder growth last month. The Institute for Supply Management said today that its February index of manufacturing business fell to a reading of 55.3 in February, from a January mark of 56.4.

Thirteen of the 20 industries polled reported growth, while six reported decreased activity. Any reading above 50 indicates expansion in the sector.

“February was another good month in the manufacturing sector,” said Norbert Ore, who directs the survey for the ISM, in a statement. “While the overall rate of growth is slowing, the overall picture is improving as price increases and shortages are becoming less of a problem.”

Within the report, the new-orders index slipped to 55.8 from 56.5 in January, while the production index narrowed to 56.7 from 57.8. The inventories index slid to 48.6 from 52.8. Manufacturing payrolls grew at a softer rate, with that gauge ebbing to 57.4 from 58.1 in January.

The prices index was 65.5 in February, compared with 69.0 in January and 72.0 in December.

Meanwhile, U.S. construction spending increased more than expected during January. The U.S. Commerce Department said today that total spending increased 0.7% to a seasonally adjusted annual rate of US$1.047 trillion. Spending rose 1.2% in December; it was previously reported as rising 1.1%.

Tuesday’s data showed residential construction spending rose by 0.5% to a seasonally adjusted annual rate of $582.3 billion, after a revised 1.5% increase in December. Nonresidential construction spending rose 0.9% a second consecutive month. Outlays rose for schools, roads, communications structures and power facilities.