By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) -- The nation's manufacturing firms were growing at a very strong pace in January, according to a closely followed survey of top executives released Monday.
The Institute for Supply Management index rose to 58.4% from 54.9% in December, above the 56.0% expected by economists surveyed by MarketWatch.
It's the highest reading since August 2004.
Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting. The ISM tracks the breadth of growth across firms, asking purchasing managers if business is better this month than last.
Both new orders and production rose above 60%.
Thirteen of 18 industries as tracked by Tempe, Ariz.-based ISM were growing in January. This is up from 9 in December.
"This month's report provides significant assurance that the manufacturing sector is in recovery," said Norbert Ore, head of the ISM's survey committee.
"It appears that it is sustainable," he added.
After worrying that the recovery would be tepid, Ore said he's now changed his mind.
"This looks like a typical recovery, where we see strong growth in the front of it," Ore said.
