Updated on
Summary U.S. manufacturing activity grew in January at the fastest pace in seven months.
The reports bolster other data showing the U.S. economy started the year strong.The Institute for Supply Management, a trade group of purchasing managers, said Wednesday that its manufacturing index rose last month to 54.1 from 53.1 in December. Readings above 50 indicate expansion.Consumers are buying more cars and trucks, while businesses ordered more machinery and other equipment. That has driven manufacturing, which expanded for the 30th straight month.Both new orders and order backlogs rose to nine-month highs. Increasing order backlogs suggest manufacturers are lacking the capacity to meet demand. That could mean more growth in production and employment in the near future, economists said.Export orders also rose, a sign that U.S. manufacturers havent yet been affected by Europes slowing economy.This is a very encouraging report on manufacturing activity that shows particular strength in leading indicators, said JohnRyding, an economist at RDQ Economics. The report followed other healthy readings on manufacturing in China, Germany and the United Kingdom.Growing global demand for factory goods sent markets higher. The Dow Jones industrial average jumped 141 points in morning trading. Broader indexes also rose.A raft of business surveys around the world ... have signaled a better than expected start to 2012 for many countries, said Chris Williamson, chief economist at Markit, a financial information provider.
