U.S. manufacturing revs up, construction down

NEW YORK (AP) — The U.S. manufacturing sector expanded in March at its strongest pace in 5 1/2 years, leading the rebound from the recession on growth in exports and inventory rebuilding.

Another drop in construction spending in February, however, underscored weakness in real estate.

Meanwhile, the number of people filing first-time claims for unemployment benefits slipped last week as the economy moves closer to generating more jobs.

The Institute for Supply Management, a trade group of purchasing executives, said its gauge of industrial activity rose to 59.6 in March from 56.5 in February. It is the eighth straight month of expansion and the fastest growth since July 2004, when the index was 59.9.

Economists polled by Thomson Reuters had expected a reading of 57. A level above 50 indicates growth.