Manufacturing Activity Expands at Fastest Pace in Two Years

U.S. manufacturing activity expanded in July at the fastest pace since June 2011, the Institute for Supply Management said Thursday.

ISM’s monthly index rose to a 55.4 reading from 50.9 in June, the group said. Figures of more than 50 indicate expansion, while below that show contraction.

The reading was higher than economists’ forecasts of a 52 reading, Bloomberg reported.

The ISM factory index measures manufacturing components of the economy.