India, Feb. 3 -- Following 26 consecutive months of contraction, the Institute for Supply Management released a report on Monday showing U.S. manufacturing activity expanded in the month of January.
The ISM said its manufacturing PMI rose to 50.9 in January from 49.2 in December, with a reading above 50 indicating growth. Economists had expected the index to inch up to 49.8.
"The PMI has increased for three consecutive months, with the most recent bump finally returning the manufacturing sector to expansion," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
The bigger than expected increase by the headline index partly reflected faster growth by new orders, as the new orders index climbed to 55.1 in Januar...