A measure of U.S. factory activity climbed to a 15-month high at the start of the year, fueled by the strongest orders growth since May 2022 and suggesting manufacturing is starting to stabilize, Bloomberg News reported. The Institute for Supply Management’s manufacturing gauge rose 2 points to 49.1 last month, according to data released Thursday. While still below the level of 50 that indicates shrinking activity, the figure exceeded all but one estimate in a Bloomberg survey of economists. The 5.5-point increase in the orders index marked the largest monthly advance in more than three years, helped by robust demand in the last half of 2023. Production expanded for the first time in four months, while a gauge of customer inventories showed the leanest stockpiles since October 2022. The nation’s purchasing and supply management executives are optimistic about the economy’s prospects as the Federal Reserve has signaled it will lower interest rates this year. Four industries reported growth in January, including apparel and transportation equipment, while 13 indicated contracting activity.
