US manufacturing rises in February

US manufacturing grew again in February, suggesting a turnaround in hiring may be on the horizon.

The Institute for Supply Management said its monthly manufacturing index fell to 61.4 in February from January's 20-year high of 63.6.

Even though the index fell below the 62.0 level forecast by economists, it was the ninth consecutive monthly reading above 50 points which is the expansion break-even point.

All 20 industry sectors in the survey had readings over 50.

The ISM manufacturing report is based on monthly responses by purchasing executives at more than 400 industrial companies, from textiles and chemicals to paper and computers.

Separate figures form the US Commerce Department show that the US continues to enjoy strong consumer spending, with consumers increasing their spending by 0.4% in January, slightly down on the 0.5% December increase, which had been driven by holiday period spending.

Once the figures are adjusted for inflation, consumer spending rose by only 0.1%, down sharply from growth of 0.7% in November and 0.3% in December, 2003.