WASHINGTON — Fresh signs in the latest economic data suggested the economy's decline is moderating, but did not show a rebound.

Construction spending rose in April, but personal spending was down slightly and personal incomes were flat. Economists were especially heartened by the report from the Institute for Supply Management that showed U.S. manufacturing activity shrinking at a slower pace in May. Reports from Asia and Europe indicated similar improvements in their manufacturing sectors.

Importantly, an index of new orders placed with U.S. factories rose to 51.1 in May. It was the first time this barometer had grown since November 2007, the month before the recession began.

SALE OF CHRYSLER ASSETS TO FIAT GETS JUDGE'S OK

NEW YORK — A federal bankruptcy judge approved the sale of most of Chrysler LLC's assets to Italy's Fiat, moving the American automaker a step closer to its goal of a quick exit from court protection.

But a trio of Indiana state pension and construction funds filed an appeal, saying that the ruling sets aside the rights of the company's secured lenders while doling out the company's assets to others.

Judge Arthur Gonzalez said in his ruling late Sunday that a speedy sale — the centerpiece of a restructuring plan backed by President Obama's automotive task force — was needed to keep the value of Chrysler from deteriorating and would provide a better return for the company's stakeholders than if it had chosen to liquidate.

DOW JONES AVERAGE DROPS GM, CITIGROUP

NEW YORK — The Dow Jones industrial average is the latest Wall Street institution to be reshaped by the financial crisis.

The stock market's best-known barometer is adding Travelers Cos. and Cisco Systems Inc., replacing Citigroup Inc. and General Motors Corp. The move comes as GM enters bankruptcy protection, a move that was widely expected.

Dow Jones said Travelers, the property and casualty insurer and one-time division of Citicorp, would replace its former parent. Cisco, which makes computer networking gear, is filling the role left by GM after 83 years as part of the Dow.

HEALTH INDUSTRY SHORT ON PROMISED SAVINGS

WASHINGTON — Health industry officials sought yesterday to make good on a $2 trillion savings proposal announced with great fanfare at the White House, but they came up short by several hundred billion dollars.

Nevertheless, the officials claimed success in producing solid proposals in time for a deadline set by President Obama after a White House photo op May 11 where they promised to curb their own costs to help his healthcare agenda.

Obama asked for a progress report by early June and the five industry groups and one labor union delivered it yesterday. They sent the White House a letter along with a series of cost-savings proposals they said could total $1 trillion to $1.7 trillion in savings over a decade.