Manufacturing activity in the Chicago region jumped this month, indicating overall strength in the U.S. economy, the Institute for Supply Chain Management-Chicago said Thursday.

The Department of Transportation Friday proposed banning interstate truck and bus drivers from using hand-held cell phones while operating a commercial motor vehicle, and sets stiff fines for violators.

Truck manufacturers said they are prepared to boost production to meet increasing demand in 2011, although some experts warned shortages of key components could develop as suppliers struggle to keep up with what could be one of the strongest sales markets in years.

In a potentially far-reaching decision, the Internal Revenue Service has determined that a Southern California drayage operator classified a truck driver as an independent contractor rather than an employee.

U.S. factory orders decreased 0.9% in October, the first drop in four months, the Commerce Department said Friday.

U.S. manufacturing activity slipped slightly in November but showed continued expansion for the 16th straight month, the Institute for Supply Management said Wednesday.

U.S. factory orders grew 2.1% in September, the Commerce Department said Wednesday.

Three truck manufacturers and engine maker Cummins Inc. all reported improved revenue in the third quarter as the market for new trucks in North America continued to improve.