ISM Reading Shows Strong Recovery (CAT, FLR)

U.S. manufacturing continues to strengthen, growing at its fastest pace in almost six years in April.

The Institute for Supply Management (ISM) said its index of national factory activity rose to 60.4 in April from 59.6 in March. The median forecast was for a reading of 60.0. A reading above 50 indicates expansion in the sector.

The data represents a ninth straight month of gains. The headline index is now at its highest level since June 2004.

A strong ISM reading bodes well for industrials such as Caterpillar (NYSE: CAT) and Fluor Corporation (NYSE: FLR).