Reuters Factory growth rises, consumer spending up

(Reuters) - Manufacturing registered its fastest pace of growth in nearly six years in April while data on construction and consumer spending pointed to further strength in the economy.

Consumer spending, which accounts for over two-thirds of economic activity, rose in March for a sixth straight month, the Commerce Department reported on Monday.

The Institute for Supply Management (ISM) said its index of national manufacturing activity rose to 60.4 in April from 59.6 in March, beating Reuters' median forecast for a reading of 60. A rise in the employment component showed employers were more confident about hiring.

"This is a strong report on the economy, indicating that the production recovery continues to move ahead at a very good pace," said Brian Bethune, chief U.S. financial economist at IHS Global Insight in Lexington, Massachusetts. more...