ISM Manufacturing Index Expands for Ninth Month

U.S. manufacturing activity expanded for the eighth consecutive month in March, the Institute for Supply Management said Thursday.

ISM’s monthly index rose to a 59.6 reading from 56.5 in February, the group said. Figures of more than 50 indicate expansion, while below that show contraction.

The reading was about in line with economists’ forecasts of a 57 reading, Bloomberg reported. January’s reading had been the highest since August 2004.

The rate of growth was the fastest since July 2004, with new orders and production indexes each rising above readings of 60, closing the first quarter with significant momentum, ISM said.

“Although the employment index decreased 1% point to 55.1% . . . signs for employment continue to improve as the index registered a 10% month-over-month improvement, indicating that manufacturers are continuing to fill vacancies,” said Norbert Ore, chair of ISM’s business survey committee.

The ISM factory index measures manufacturing components of the economy.