U.S. factory activity peaking

Manufacturing activity in the U.S. has reached its highest level in almost three decades, according to a key gauge used by the U.S. Institute for Supply Management. The ISM gauge rose to 62.8 in May, implying that more factories hired workers than at any time in the past 31 years. Seventeen of the 20 industries surveyed by the ISM reported growth in hiring, led by textiles and producers of computers and industrial equipment. Economists are crediting growth in manufacturing as one of the driving forces behine the current economic recovery.