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U.S. Factories Rebound Strongly

Wall Street Journal (08/01/13) Neil Shah

The Institute for Supply Management has announced that its broad index rose to 55.4 in July from 50.9 in June, which is the largest one-month jump since 1996. Readings above 50 indicate expansion. Factories are producing at a nine-year high, and new orders have reached a two-year high. Exports continue to grow.

Increased U.S. business and consumer spending, the housing recovery, and moderate overseas economic improvements are driving the increases in factory production. Hiring at factories is at its highest point of the year, despite the manufacturing job losses seen over the previous four months.