ISM Manufacturing Index Expands at Fastest Pace in Seven Months

U.S. manufacturing activity rose at the fastest pace in seven months in December, the Institute for Supply Management said.

ISM’s monthly factory index rose to a 57 reading, from 56.6 in November. Figures greater than 50 indicate expansion.

The reading matched economists’ median forecast, Bloomberg reported.

“We saw significant recovery for much of the U.S. manufacturing sector in 2010,” said Norbert Ore, chairman of ISM’s business survey committee,

“The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle,” he said in a statement.

Production jumped 5.7 points to a 60.7 reading, while new orders improved 4.3 points to 60.9.

ISM’s factory index measures manufacturing components of the economy.