U.S. factory growth seen "marginal" in 2008 - ISM

NEW YORK, May 6 (Reuters) - U.S. manufacturing growth is likely to be "marginal" this year, with revenue up only 1 percent, according to a survey released on Tuesday by the Institute for Supply Management.

ISM said capital investment would increase by 1 percent in 2008 and capacity utilization would be 78.6 percent in the factory sector this year, according to the results of the semiannual survey of purchasing and supply executives.

It said the non-manufacturing sector would see "sustainable" growth in 2008, with revenue up 2.7 percent, but capital investment was expected to fall 2.7 percent. Capacity utilization in the service sector was seen at 85.9 percent.

The services sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants. (Reporting by Burton Frierson; Editing by James Dalgleish)