Manufacturing in U.S. Expands Near Seven-Year High on Inventory Rebuilding

Manufacturing in the U.S. expanded in March at close to the fastest pace in almost seven years, reinforcing signs the industry will propel growth in the world’s largest economy.
The Institute for Supply Management’s manufacturing index was little changed at 61.2, after February’s 61.4 reading that was the highest since May 2004, the Tempe, Arizona-based group’s report showed today. Figures greater than 50 signal expansion.
Companies like Caterpillar Inc. (CAT) and United Technologies Corp. (UTX) are benefiting as production, fueled by inventory rebuilding at the start of the recovery, gets an added boost from rising demand in the U.S. and overseas. The strength in manufacturing is also generating job gains, a necessary ingredient to a sustained expansion.