American Factory Activity Accelerates

U.S. manufacturing activity grew in April at the fastest pace since July 2011, according to the Tempe, Ariz.-based Institute for Supply Management.

ISM's factory index rose to an 11-month high of 54.8 from 53.4 in March. Any reading above 50 indicates expansion.

The research group credits the increase to growing employment and robust new orders and production. ISM reports expansion last month in 16 of the 18 industries it tracks.

Economists say the stronger-than-expected data show that manufacturing, which accounts for 12% of the U.S. economy, remains a pillar of the recovery.