ISM Manufacturing Index Rises in March

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he Institute for Supply Management said Thursday factory activity in March expanded at a faster pace than the previous month.

ISM's manufacturing index rose to 62.5 from 61.4, the fifth month the index has exceeded 60 and the 11th straight month it has been greater than 50, the level that signals growth. January's reading of 63.6 was the highest since December 1983.

Economists had expected a reading of 59.5 in the factory index, Bloomberg said. Manufacturing is one of trucking's largest and most important customers.

In another report, the Commerce Department reported construction spending slid 0.1% in February to a seasonally adjusted annual rate of $921.11 billion from a downwardly revised $922.23 billion in January.

February marked the second straight monthly decline in construction spending. Spending on private residential construction fell 0.3% while private nonresidential construction spending rose 1.1%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.

Meanwhile, ISM said the March employment index rose to 57 from 56.3 the prior month. It was the highest since a reading of 59 in December 1987.

The production index, a gauge of work being performed, rose to 65.5 from 63.9 in February. The new orders index, which accounts for about a third of the total, eased to 65.7 from 66.4.

he index of inventories fell to 48.3 from 49.4, indicating inventories are being run down at a faster pace.

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

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