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Factories Ramp Up As Low Inventories Spur Orders, Output; ISM July Index At '05 High; The latest sign of revival in factories and economy hint at no '05 Fed pause.(A)
Byline: LAURA MANDARO
U.S. manufacturing activity increased in July, as automakers revved up production.
The Institute for Supply Management on Monday said its manufacturing index rose 2.8 points to 56.6 in July, the best reading of the year and topping forecasts.
Readings over 50 indicate factory activity is growing.
After last week's strong durable goods and Midwest manufacturing reports, the ISM confirmed a brighter outlook for factories -- and economic growth overall.
"The latest few reports suggest that the industrial side of the economy is reaccelerating," said Manufacturers Alliance Chief Economist Daniel Meckstroth.
The ISM's new orders index rose 3.4 points to 60.6, also a 2005 high. The production subindex shot up 5.6 points to 61.2, the highest since September.
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