Manufacturing Index Up

The Institute for Supply Management said its index of national factory activity rose to 42.8 in May from 40.1 in April. This was the index’s highest reading since September and was the fifth straight monthly rise. A reading below 50 in the manufacturing index indicates contraction. ISM said the index has been below this threshold for 16 straight months.

However, the fifth straight monthly rise in this measure of U.S. manufacturing followed encouraging signs from China and Europe that the world has moved past the worst of the current downturn.

In another report, the Commerce Department said private construction spending jumped 1.4% in April from March, the biggest advance since August. Spending on public construction fell 0.6% in April after increasing 1% in March. Federal spending on construction projects plummeted 6.5% in April, the biggest drop since January.