Economy, manufacturing slows in January.

Manufacturing growth nearly stalled in January while auto sales reversed, the latest in a series of weaker-than-expected economic reports. Stocks sold off hard Monday.

The Institute for Supply Management's January manufacturing index shed 5.2 points to 51.3, its lowest since May and far below forecasts, though still above the neutral 50 level.
Many respondents blamed winter weather, but key details were grim too. The new orders gauge fell 13.2 points to 51.2, the worst monthly drop in decades. Backlogs sank to a reading of 48, in con traction territory, suggesting that manufacturers lacked sufficient new business to keep busy.

Auto output has helped lead manufacturing's recovery. But car and truck sales generally disappointed in January. General Motors (GM) said Monday that U.S. sales fell 12% vs. a year earlier. Ford (F) and Toyota (TM) also reported big drops, though Chrysler and Nissan (NSANY) enjoyed solid gains.