WASHINGTON, Dec 1 (AFP) - US manufacturing activity accelerated in November, expanding for the 18th consecutive month as new orders flooded in and factories hired extra workers, an industry survey showed Wednesday.
The Institute for Supply Management's purchasing managers' index (PMI), based on a survey of supply executives, rose 1.0 point to 57.8 in November, slightly stronger than Wall Street analysts' forecasts.
It was the 18th month in a row above 50 points, the theoretical dividing line between manufacturing expansion and contraction.
"November reverses three consecutive months in which the rate of growth had slowed," said the survey chief, Norbert Ore.
"The manufacturing sector appears poised to end the year on a strong note as the new orders index made its way back above the 60 percent mark, and the employment index picked up significant momentum," he said.
"There is still significant upward pressure on prices as commodity price increases are common."
A breakdown showed:
-- The index of new orders rose 3.2 points to 61.5, showing faster growth when compared to October.
-- Production grew at a slower pace, with the index falling 1.9 points to 57.0.
-- Employment expanded at a faster rate, growing for the 13th consecutive month, with the index up 2.8 points to 57.6.
-- Prices paid by manufacturers rose for the 33rd straight month, albeit at a slower pace, with the index down 4.5 points to 74.0.
"Today's ISM survey report confirms that the manufacturing recovery is solid, broad-based, and sustainable," said Manufacturers Alliance president and chief executive Thomas Duesterberg.
"Particularly encouraging is the growth in the employment index," Duesterberg added.
"If we can reduce cost pressures for energy and materials, and if we can achieve faster export growth due to changes in currency values, 2005 could see more robust growth than current forecasts."
Comments from survey participants showed concerns that price increases, particularly for energy, were eating into profits, the ISM survey said.
"It appears the manufacturing sector is definitely sustaining its momentum as this month's PMI strengthened slightly while continuing to indicate a gradual downward trend," said the survey chief.
"Prices are a big issue, but the strength in new orders offsets some of those concerns as companies work to benefit from the volume," Ore said in the survey report.

12/01/2004 15:49 GMT - AFP