Manufacturing growth accelerated in January for a fifth consecutive month on stronger orders and production that signal America’s factories are rebounding.
The Institute for Supply Management’s index rose to 56, the highest since November 2014, from 54.5 the prior month, data from the Tempe, Arizona-based group showed Wednesday. The median forecast in a Bloomberg survey of economists called for 55. A reading above 50 signals expansion.
The report showed the gauges of production and orders also climbed to more than two-year highs, underscoring sustained improvement in manufacturing following a soft patch in mid-2016. Stronger demand is helping drive up costs of raw materials, as a measure of prices paid jumped to the highest since May 2011, adding to signs of inflation picking up worldwide.