Manufacturing Index Shows First Growth in 19 Months

In one of the strongest signs yet that the recession is ending, the Institute for Supply Management said Friday that its manufacturing index reflected expansion in February, for the first time in 19 months.

Expansion in manufacturing would provide increased business for many segments of the trucking industry.

ISM, formerly known as National Association of Purchasing Management, said the index increased to 54.7 from 49.9 in January. Readings above 50 signal expansion. The last time the index was above 50 was July 2000.

In other economic news Friday, the University of Michigan said that its final index of consumer sentiment for February was 90.7, below a preliminary reading of 90.9 and January's reading of 93. This shows consumers were slightly less upbeat about their economic situation in February than the previous month.

Also Friday, U.S. construction spending rose 1.5% in January to an annual rate of $876.7 billion as work increased on homes and highways, the Commerce Department said. This was the strongest reading since January 2001 and followed a 0.5% rise in December.

Increased construction spending can benefit the flatbed trucking industry that hauls a good portion of construction materials. Economists surveyed by Bloomberg expected a 0.2% rise.

Earlier, Commerce said that personal spending rose 0.4% in January (Click here for the full story).

Meanwhile, ISM said that the new orders index, a barometer of demand for factory goods in the future, jumped to 62.8 from 55.3 in January.

The production index, a gauge of current output, rose to 61.2 from 52.0, and the inventories index fell to 39.5 in February from 40.5.

Overall, 14 out of 20 industries in the survey reported growth, ISM said.

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