(Reuters) – U.S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in years, suggesting the economy had lost steam at the start of 2014.

The economic picture was also darkened by other data on Monday showing spending on construction projects barely rose in December.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 51.3 last month, its lowest level since May 2013, from a recently revised 56.5 in December.  Read more