The Institute for Supply Management (ISM) reported its index of manufacturing activity rose to 63.6 last month from a revised 63.4 in December. Economists, on average, expected an ISM index of 64.

January's index was the highest since 69.9 in December 1983. A reading above 50 indicates expansion in manufacturing.

Separately, the Commerce Department said U.S. construction activity hit a new record high in December, but that report also missed Wall Street expectations.

Of the 2.3-million non-farm payroll jobs that have disappeared since February 2001, most have been factory jobs, and many of those jobs are never coming back. But various national and regional surveys have shown a strong rebound in manufacturing activity in recent months.

Although the ISM's employment index dipped to 52.9 from 53.5 in December, it is the third straight month above 50, following 37 months below that mark. ISM's new orders index dipped to 71.1 from 73.1 in December. The group's export orders index dipped to 57.5 from 60.

ISM's price index surged to 75.5 from 66 in December. The production index rose to 71.1 from 69.2 in December

By: DocMemory
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