WASHINGTON (AP) — The factory sector expanded in January at the fastest pace
in seven years, as manufacturers reported a sharp jump in new orders.
The Institute for Supply Management, a private trade group, says its index of
manufacturing activity rose last month to 60.8. The sector has expanded for 18
straight months of expansion, and January’s reading was the highest since May
2004. Any reading above 50 indicates expansion.
The manufacturing sector bottomed out at 33.3 in December 2008, the lowest
point since June 1980. It has helped drive growth since the recession ended in
June 2009.
The employment index also rose, a sign that manufacturing companies are hiring
more workers. And the prices paid index, which measures whether manufacturing
companies are paying more for raw materials, jumped sharply.