The Institute for Supply Management (ISM), a trade group of purchasing executive, reported a rise in manufacturing data. The ISM's manufacturing index rose to the highest since April 2006.
The ISM is a trade group of purchasing executives. It said its manufacturing index was 55.9 in December after 53.6 in November. A reading above 50 indicates growth.
Analysts polled by Thomson Reuters had expected a reading of 54.3. Those surveyed by MarketWatch were expecting a similar gain to 54.2%. When the index bottomed out in Dec. 2008, at the height of the recession, it read 32.9.
The expansion in the manufacturing sector occurred for the fifth straight month, the ISM said. The index also includes production, employment, inventories and prices. According to Norbert Ore, chairman of the ISM's survey committee, manufacturing is benefiting from the need to restock inventories.
Separately, the Commerce Department reported on construction. It noted that construction outlays fell for the seventh consecutive month, dropping 0.6% in November after a downwardly revised 0.5% decline in October.
The New York Stock Exchange, however, appeared to be taking its cues from manufacturing. It saw its first day in 2010 to be a positive one, at least in early trading. At the time of this writing the DJIA is up nearly 150 points.
Written by Michael Santo
HULIQ.com
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