U.S. stocks fell further on Thursday, with major indexes down more than 1 percent, after data showed the manufacturing sector grew in September, but at a slower pace than anticipated.

Separate data, however, showed U.S. construction spending unexpectedly rose at its fastest pace in nearly a year in August.

Earlier, a government report showed applications for jobless benefits rose unexpectedly, overshadowing a rise in August personal spending.

The Dow Jones industrial average <.DJI> dropped 63.11 points, or 0.65 percent, to 9,649.17. The Standard & Poor's 500 Index <.SPX> fell 8.26 points, or 0.78 percent, to 1,048.82. The Nasdaq Composite Index <.IXIC> lost 19.81 points, or 0.93 percent, to 2,102.61.

(Editing by Padraic Cassidy)