Manufacturing at nearly 7-year peak

NEW YORK (CNNMoney) — Manufacturing activity in the United States climbed in February to the highest level in nearly seven years, a purchasing managers’ group said Tuesday.

The Institute for Supply Management (ISM) reported that new orders and production drove the composite index, known as the PMI, to 61.4 in February. That’s the highest level since May 2004.

The ISM said this represents the 19th consecutive month of expansion for the manufacturing sector, and the 21st consecutive month of expansion for the economy as a whole.

The ISM also said the employment Index is above 60 for only the third time in the last decade.

But the ISM offered a cautious tone, considering the weakness in the housing market and inflation.

“While there are many positive indicators, there is also concern as industries related to housing continue to struggle and the Prices Index indicates significant inflation of raw material costs across many commodities,” said Norbert Ore, chairman of ISM’s Manufacturing Business Survey Committee, in a prepared statement.