U.S. manufacturing grew in April at the strongest rate in 10 months, easing concerns the economy had lost momentum at the start of the second quarter, Reuters reported. The Institute for Supply Management said on Tuesday its index of national factory activity rose to 54.8 from 53.4 in March. The figure bested expectations for a decline to 53.0 and came in above the top end of forecasts in a Reuters poll. A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 indicates expansion. ISM's gauge of employment also rose to its highest level since last June, to a reading of 57.3 from 56.1. The forward-looking new orders component racked up its best reading in a year at 58.2, up from 54.5. The strong labor figure comes ahead of the government's more comprehensive monthly jobs report due on Friday, which is forecast to show the economy added 170,000 jobs in April, including 22,000 manufacturing positions. The national ISM report was in contrast to some regional manufacturing reports from the industry group, including Chicago on Monday, that had showed the rate of growth slowed last month. It also bucked the trend of other recent data that suggested the economy lost some steam as the second quarter got under way, highlighting the bumpy nature of the recovery. Manufacturing accounts for about 12 percent of U.S. economic activity and has been a cornerstone of the recovery from the 2007-2009 recession. The economy grew at a 2.2 percent rate in the first quarter, slower than the 3 percent pace logged in the final months of 2011. Tuesday's data sent Wall Street higher, with U.S. stocks up about 1 percent in late morning trading. It also helped the dollar rally from a one-month low against the euro , while Treasuries prices fell. Markets have been speculating whether the Federal Reserve will embark on a third round of bond buying to drive down long-term interest rates and help bolster the economy. Two top central bank officials on Monday said they saw no need for the Fed to ease monetary policy further. -- SPA
