"There is some momentum being built in manufacturing"
- Tom Simons, an economist at Jefferies Group Inc.
Manufacturing activity in the world's largest economy expanded at the fastest pace in over a year and a half in February, due to a surge in new orders, the Institute for Supply Management's said Friday. Nation's factory index advanced to 54.2, compared to a 53.1 reading recorded in the previous month. Analysts, however, expected a pullback to 52.5. The new orders index soared to 57.8 from 53.3, positng the highest level since April 2011, while a gauge of production gained to 57.6 from 53.6. The U.S. manufacturing sector lost traction in the second half of 2012 and even contracted in November in the wake of the massive storm that hit the country.
"There is some momentum being built in manufacturing," said Tom Simons, an economist at Jefferies Group Inc. in New York, whose forecast of 54 was the highest in the Bloomberg survey. "It's encouraging that pent-up investment demand is finally being released after being restrained by the fiscal cliff."
"The momentum in the business is strong," Michael Splinter, chief executive officer at the Santa Clara, California-based company, said at a conference the following day. "Our display business is starting to come back. Orders are picking up there as well."
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