Manufacturing Index Hits 20-Year High In Jan. As Weak Dollar Fuels Recovery; Output, Orders, Prices Hot; Jobs index stays positive; factories' outlook strong for 2004, economists say.(A)

Byline: CHRISTINA WISE

The manufacturing recovery rolled on in January, according to a key industry survey out Monday.

The Institute for Supply Management's purchasing managers index climbed 0.2 to 63.6 last month. That was the highest reading in 20 years, though it fell shy of economists' 64.5 forecast.

"The manufacturing sector gained momentum in January as the PMI continued to accelerate," Norbert Ore, ISM's chairman, said in a written release. "Both new orders and production remain quite strong, indicating that the manufacturing sector is experiencing a much-needed recovery."

The index is based on a monthly survey of purchasing managers at roughly 400 industrial companies. Readings over 50 indicate growth.

Orders, Output Soaring

The new orders subindex stood at 71.1, just below December's 20-year high of 73.1. The production subindex climbed 1.9 points to 71.1, the highest since December 1983. Both measures have been above the boom-bust 50 mark the last nine months.