Factory Orders Rise As Hiring Weakens; Construction Down; Dec. ISM Index Up To 58.6; Jobs index's 13-mo. low and worst building drop in years hit stock market.(A)

Byline: CHRISTINA WISE

Data out Monday showed factory activity picked up, but home building slowed.

The Institute for Supply Management's manufacturing index rose 0.8 point to 58.6 in December. New orders jumped 5.9 points to 67.4, the best since January. Readings over 50 indicate expansion.

Inventories expanded, rising 2.7 points to 53.4. Order backlog followed suit, gaining 6.5 points to 54.

Mat Johnson, director of strategy and economics at Think Equity Partners, said the report bodes well for future factory activity.

But, he also noted, factory hiring slowed. The jobs index fell to 52.7 from 57.6 in November. That's the lowest since late 2003.

"The stumbling block in the report was the employment component, which showed a slight deceleration in growth from November to December," Johnson said.