U.S. Factory Activity Rose Briskly in February

U.S. factory activity expanded quickly in February, the latest sign the economy is gaining momentum.

The Institute for Supply Management said Wednesday its closely watched manufacturing index rose to 57.7 in February from a month earlier, when it reached a two-year high of 56. A reading above 50 indicates expansion in the manufacturing sector.

Economists surveyed by The Wall Street Journal expected a February reading of 56.

The report showed a measure of new orders at factories climbed nearly 5 points to 65.1. A measure of hiring cooled but remained at a level suggesting steady expansion.

By Josh Mitchell