An index of U.S. manufacturing activity expanded in January for the sixth straight month to the highest level in five and a half years, the Institute for Supply Management said Monday.
ISM’s monthly factory services index rose to a 58.4 reading from 54.9 reading in December, marking the highest level since August 2004, ISM said in its monthly report.
Figures of more than 50 indicate expansion, while below that show contraction. The January reading topped economists’ forecasts of 55.5, Bloomberg reported.
The production index jumped to a 66.2 reading from 59.7 the previous month, while new orders rose to 65.9, from 64.8.
Export orders increased to 58.5 from 54.5 and the employment index rose to 53.3, from 50.2.
“This month’s report provides significant assurance that the manufacturing sector is in recovery,” Norbert Ore, chair of ISM’s business survey committee, said in a statement.
“Both the new orders and production indexes are above 60%, indicating strong current and future performance for manufacturing. This month, 13 of 18 industries reported growth, up from nine industries last month, and this is a good indication that the impact of the recovery is expanding,” he said.
The ISM factory index measures manufacturing components of the economy.
