ISM Factory Index at Highest Level in 20 Years

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he Institute for Supply Management said Monday its manufacturing index rose to 62.8 in November, the highest level since December 1983.

November was the fifth straight month of readings higher than 50, indicating expansion. November’s index increased from 45-month high of 57 in October.

Manufacturing is one of trucking’s largest and most important customers. Economists had expected a reading of 58.4, Bloomberg reported.

"Indications are that the manufacturing sector is ending 2003 on a very positive note, and all of the indexes support continued strength into 2004,” said Norbert Ore, ISM chairman. “While there are still companies lagging the recovery, they should be encouraged by the current indicators in the sector."

The new orders index surged to 73.7 from the October reading of 64.3, which was the highest since 65 in June 1994.

The production index, a gauge of work being performed, rose to 68.3 from a month-earlier reading of 62.6 that was the highest since 64.5 in July 1997.

The employment, prices paid and inventories indexes all increased as well, ISM said.

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