Manufacturing strengthened in February 2018, helped by hiring, the Institute for Supply Management said.
The group’s manufacturing index, known as PMI, rose to 60.8% last month, up from 59.1% in January, the group said in a monthly report. It was the highest index reading since May 2004.
“Employment was the single biggest contributor” to the PMI in February, Timothy R. Fiore, chair of ISM’s Manufacturing Business Survey Committee, said.
The rise in the index came despite a slowing in growth for new orders and production, two major parts of the PMI. However, Fiore said both are still running at strong levels.
“Everything we’re seeing is that demand will continue,” he said.
ISM said 15 of 18 industries showed economic expansion. They included primary metals, machinery, petroleum and coal products, fabricated metal products, transportation equipment and miscellaneous manufacturing. The group said only two industries reported economic contraction, apparel and furniture.