Plants more occupied in June after the spring slump (AP)

NEW YORK - Factory activity picked up in June, after stagnation may, helped by the low price of gas and some disturbances in the supply of facilities.

The Institute for the management of supplies, a trade group of purchasing executives, said Friday that its index of manufacturing activity fell to 55.3. The sector is now developed for 23 straight months. Last month's growth has been slower in 20 months.

The highest reading was an optimistic sign that the economy could be strengthening after collapse of spring.

Stocks jumped after the publication of the report. The Dow Jones industrial average rose 152 points in midday trade and broader indexes also rose.

"This is further evidence that the recent slowdown in economic activity is temporary," said Steven Wood, Chief Economist for Insight economists. "However, the strength of the recovery is a question open, held the other factors."

A reading above 50 indicates the manufacturing sector is expanding. Still, growth has been muted leave earlier this year, when the index topped 60 for four straight months. And other sectors of the economy remain weak, such as housing and employment growth.

Construction spending fell in May to seasonally, a pace of about 758 billion dollars, the Commerce Department said Friday. Budget at the level of State and local cuts led to a sharp decline in government spending. And builders cut spending again, mainly on the apartment projects.

Overall, construction spending was slightly above a low success of 11 years in February. And it is about half the pace $ 1.5 trillion considered healthy by most economists. Analysts say that it could be four more years before the construction refers to healthy levels.

The economy increased by 1.9% during the period from January to March, the Government said last week. Most economists predict growth to be similarly low in the period from April to June.

But the price of gasoline are down. The average price per gallon was $3.55 Friday. It is down nearly $ 4 per gallon, early May.

Cheaper gas should allow consumers to eat out more often and spend more on discretionary purchases, such as furniture and appliances. Consumer spending accounts for 70% of economic activity.

And the impact of a shortage of parts from March 11, earthquake in the Japan appears to be facilitated. All U.S. manufacturers three Friday higher sales in June, after a slowdown in May.

SDA report gave investors some hope that growth will be stronger in the second half of the year, said economist IHS Global Insight Nigel Gault.

There is a little more new orders for the goods in June and resumed employment. Manufacturers in addition to their stocks again.

Economists are also on a resumption of car production to boost growth in the second half. Deutsche Bank economists estimate that manufacturing auto improved could add as much of a full percentage point in the third and fourth quarter, growth.

Some signs from abroad are troubling, too. Chinese manufacturing slipped to its pace slow in 28 months of June, dragged down by rising rates of interest and decline in exports, according to a survey of output Friday in China.

One might think problems with the United States. The factory sector was the primary recovery, increasing driver now for 23 straight months. And strong growth abroad has been a key element of this growth for the major manufacturers of industrial equipment and machinery, such as Caterpillar Inc..

The ISM, a group of trade for the purchase of executives based in Tempe, Arizona, compiles its index of manufacturing by surveying approximately 300 executives buying across the country.