ISM Reports Chicago Manufacturing Index At 45.1

The contraction of manufacturing in the Chicago area reversed in January for the first time in four months, a survey by the Institute for Supply Management found Thursday.

The manufacturing sector is one of the largest and most important customers of the trucking industry.

In other economic news, the Commerce Department said that personal spending, which accounts for about two-thirds of the nation's economic activity, dipped 0.2% in December. Personal incomes rose 0.4%.

Also, the Labor Department said the number of workers filing initial jobless claims rose by 30,000 to a 390,000 last week, while the four-week moving average, which smoothes out weekly fluctuations, fell by 15,250 to 386,000. That was the lowest level since Aug.18 and is an indication the labor market is stabilizing, the Associated Press reported.

ISM, which used to be known as the National Association of Purchasing Management, said that its factory index for the Chicago area rose to 45.1 in January from 41.5 in December. Any reading below 50 indicates contraction.

The survey also found that production in the area increased for the first time in more than a year, and the index of new orders rose to 48.7, the highest since July 2000.

The national manufacturing report, scheduled for release on Friday morning, may show that a 17-month contraction in the manufacturing sector has ended, Bloomberg reported.

Meanwhile, Commerce’s finding that personal spending fell in December was blamed on consumers finding fewer special offers such as free-financing offers for vehicles, AP said.

Still, Wednesday’s gross domestic product report showed that consumer spending rose 5.4% in the October-December period in 2001, one of the reasons the economy was able to grow at a 0.2% rate during the period. (Click here for the related story.)

For all of 2001, spending rose by 4.9%, the smallest since 1991, Commerce said.

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