Unexpected rise in US manufacturing activity

US manufacturing rose in December, an index of the nation's purchasing managers said today.

The gain was unexpected.

Most Economists had expected the index to decline.

The Institute of Supply Management's reading on manufacturing activity for the month of December rose to 66.2 % from 62.8 % in November, and was well over the anticipated dip to 61.5%.

The index was the highest since 69.9 in December 1983.

It has been above the watershed mark of 50, any figure above this number indicates growth, for six months in a row.

The ISM's employment index rose to 55.5 from 51 in November, and was the second month in a row over the crucial 50 mark, following over three years reading under 50.

Wall Street responded to this unexpected nugget of good news.

The Dow Jones Industrials added 0.7%, to 10,525, the highest level seen since mid-March 2002.

The Nasdaq rose 0.42% and the S&P was 0.47% higher this afternoon.