March 02, 2007	Friday	Safar 12, 1428

WASHINGTON, March 1: The struggling US manufacturing sector rebounded in February as factories trimmed inventories and boosted output for a broad range of goods, the Institute of Supply Management reported on Thursday.

The ISM index of national industrial activity rose to 52.3 per cent from 49.3pc in January.

Any reading over 50 indicates expansion, so the report suggests the industrial economy is picking up steam after shrinking in two of the past three months.

The figure was better than the average Wall Street estimate of 50 per cent.

“Manufacturing gained ground in February after cold weather may have inhibited activity in January.

“The importance of today's release is stability. Financial market fears of a dramatic slowdown have heightened as investors turn more risk adverse. From the economic standpoint however, we continue to see moderate growth with a robust consumer that has already worked down inventories.”

Norbert Ore, chair of the ISM survey committee, said the survey showed “a good month in the manufacturing sector as new orders, production and employment contributed to a solid growth scenario.”—AFP