US manufacturing activity continues to grow steadily, buoyed by an increase in new orders and blue collar employment.
The Institute for Supply Management index of manufacturing activity rose to 53.1 in January from 50.2 in December. Readings above 50 indicate expansion.
This was the highest reading since April last year, when the index hit 54.1.
The latest data is a strong indication US manufacturing is again on the rise after struggling through most of 2012.
The Institute’s report showed that demand for factory goods increased in the past two months despite uncertainty about tax increases, government spending cuts and a weaker global economy.
In other positive news for the sector, the US Labor Department reported that the job market held steady at the end of last year even as economic growth stalled.
Employers added 157,000 jobs in January – with 4000 new jobs in the manufacturing sector.
The Institute surveyed 18 industries, with 13 reporting an increase in manufacturing activity last month. They included manufacturers of plastics and rubber, textiles, furniture, printing, and apparel.
Four industries reporting contraction: minerals, computers and electronics, wood and chemicals.
