Manufacturing Index, Construction Spending Rise

A key manufacturing index rose to 55.6 in March from 54.7 in February, the second straight increase after a 19-month slump, the Institute for Supply Management said.

Also Monday, the Commerce Department said that construction spending rose 1.1% to $879.4 billion in February.

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

ISM's factory index has now risen 5.7 points in the past two month. Readings above 50 signal expansion. Prior to last month, the last time the index was above 50 was July 2000.

Bloomberg said March's reading is a sign that factories are emerging from their slump and will contribute to a U.S. economic recovery. Economists had expected a reading of 54.8.

Analysts on CNBC noted that since there was such a sharp increase in February, many people expected it would take several more months before another significant jump in the index was seen.

However, increased demand for consumer goods like automobiles helped keep factories growing in March.

Meanwhile, Commerce said that construction of single-family homes rose more in February than any other month in more than eight years.

Construction is being helped by low interest rates and mild weather, Bloomberg said. Analysts had expected a 0.6% increase after a revised 0.8% jump in January

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