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Factories Growing Fast, Forced To Start Hiring, Feb. ISM Gauge Finds; Jobs Index At 17-Year High; Increasing delivery times also signal productivity alone can't meet demand.(A)
Byline: CHRISTINA WISE
Manufacturing's recovery rolled on in February, according to a key industry survey out Monday, with signs that factory hiring finally may be taking place.
The Institute of Supply Management's manufacturing index stood at 61.4 in February, just shy of January's 63.6, which was the highest in over 20 years. Economists expected 61.5. The index has been above the boom-bust 50 mark for nine straight months and above 60 for four months.
The index's production component came in at 63.9, lower than January's red-hot 71.1, a 20-year high. The new orders index declined to 66.4 from 71.1.
"Despite the modest decline, manufacturing remains quite strong as even hiring is bouncing back," said Joel Naroff of Naroff Economic Advisors.
There also were signs manufacturers have finally stepped up hiring. The jobs subindex rose 3.4 points to a 17-year high of 56.3.
The jobs index has been positive for four months, but so far that has not translated into factory hiring.
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