ISM Manufacturing Index Expands for Fifth Month

An index of U.S. manufacturing activity expanded in December for the fifth straight month, the Institute for Supply Management said Monday.

ISM’s monthly factory services index rose to a 54.9 reading, the highest since April 2006, from 53.6 in November, ISM said in its monthly report.

Figures of more than 50 indicate expansion, while below that show contraction. Economists had forecast the index to fall to a 54.3 reading, Bloomberg reported.

New orders jumped 5.2 to a 65.5 reading, while production gained 1.9 to 61.8.

“This month’s report is quite strong,” said Norbert Ore, chair of ISM’s business survey committee.

“Overall, the recovery in manufacturing is continuing, but there are still some industries mired in the downturn as evidenced by the seven industries still in decline,” he said in a statement.

The ISM factory index measures manufacturing components of the economy.