ISM reveals strong manufacturing recovery

The latest survey released by the Institute for Supply Management shows that manufacturing continues to recovery at a strong pace.

The ISM Manufacturing Index fell 0.7 points to 59.7.  A reading above 50 indicates that goods producers are expanding.  New orders held at a very robust 65.7, pointing to further gains, while manufacturers continue to say that customer inventories are too low, which also implies that production will stay strong.

Those looking for jobs also received good news, as the employment index increased 1.3 points to a strong 59.8.

Manufacturing underwent wrenching cuts in production in late 2008 and early 2009.  The difficult but needed cuts helped to get inventories back in line with sales. 

Now that demand is picking up, formerly bloated stockpiles have been replaced by barren warehouses, and manufacturers are reacting by boosting production and helping to power overall growth in the economy.