ISM Factory Index Rises to 58.6 in December

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he Institute for Supply Management said Monday its factory index for December rose to 58.6 from 57.8 in November.

The index has shown expansion, marked by readings greater than 50, since June 2003. The manufacturing sector is one of trucking's largest and most important customers.

conomists forecast a reading of 58.5, Bloomberg reported. Analysts said the increase in the index suggested production would keep the economy growing in 2005.

The new orders index, which accounts for about a third of the total, surged to 67.4 from 61.5 in November. The production index, a gauge of work being performed, was little changed at 56.9 after 57 in November.

The employment index dropped to 52.7 from 57.6. The index of inventories rose to 53.4 from 50.

The backlog of orders index jumped to 54 from 47.5. The new export orders index rose to 60 from 54.7. The index of supplier deliveries, which measures how long it takes to get materials, fell to 54.9 from 56.5.

ISM surveys more than 400 companies in 20 industries, including transportation, clothing, printing, furniture and plastics.