February 2, 2004

WASHINGTON – U.S. factories boosted production in January, causing a major manufacturing index to rise at the highest rate in two decades.

The Institute for Supply Management reported Monday that economic activity in the manufacturing sector grew in January for the eighth consecutive month. ISM's Purchasing Managers' Index registered 63.6 percent in January, the highest since 1983. A PMI Index of 50 or higher indicates economic expansion.

Rep. Tom Petri cheered the news. "It appears that a strong foundation is being laid for economic recovery, and hopefully for some real, good jobs in manufacturing in the months ahead," he said. "The business sector has been very slow to re-build inventories, but purchases continue, and I think that's going to move through the economy as inventories are replenished. As the spring and summer approaches we should see the demand for jobs increase. I think more jobs are in prospect."