Dow Jones up from manufacturing data

Published:  2 May at 6 PM

As reported by the BBC, the New York Dow Jones index has finished at its best level for over four years, buoyed by data showing US manufacturing stronger than expected for April. The Institute for Supply Management also announced that its manufacturing activity index went up to 54.8 in April from 53.4 in March. Figures above 50 show expansion.

The Dow went up 66 points to end the session at 13,279, its best rate since December 28, 2007. The index risen steadily since going under the 7,000 mark in January 2009, and went back above 13,000 during February 2012. The Standard & Poor's 500 and the Nasdaq also finished higher on Tuesday.

The ISM announced that new orders, along with production and jobs in manufacturing all went up in April. Its gauge of employment in the industry went up to a nine-month record. This will be regarded as an encouraging signal ahead of Friday's jobs report by the Labor Department.

This comes following several reports during recent weeks suggesting the manufacturing industry and the overall economy may be slowing. Nick Bennenbroek at Wells Fargo says the ISM suggests that there is no strong reason to get overly concerned about the trajectory of the American economy at this point.