ISM Index Expands at Fastest Pace Since 2004

May 3, 2010 10:15 AM, EDT

U.S. manufacturing activity expanded in April at its fastest pace since June 2004, the Institute for Supply Management said Monday.

ISM’s monthly index rose to a 60.4 reading from 59.6 in March, the group said. Figures of more than 50 indicate expansion, while below that show contraction.

The reading was slightly higher than economists’ forecasts of a 60 reading, Bloomberg reported. March’s reading had been the highest since July 2004.

The ISM factory index measures manufacturing components of the economy.