Manufacturing picked up modestly in June, as booming home and vehicle sales bolstered key industries. A closely-followed index of factory activity rose to 53.5 from 52.8 in May, the Institute for Supply Management (ISM) said Wednesday, above the 53.2 expected by economists surveyed by Bloomberg. The supply-chain trade group surveys of manufacturing supply managers monthly on topics like employment and trade. A reading above 50 indicates that the sector is expanding, while below 50 means it's shrinking, with an average of 54.9 for the past year. Continuing May's trend, the index indicates a moderate jump in manufacturing, with budding growth in the housing sector boosting cabinet and furniture makers, and vehicle sales supporting metal producers. Still, growth is muted as suppliers recover from a rallying dollar that has hurt exports and a pullback in oil drilling. "Comments from the panel indicate mostly stable to improving business conditions, with the notable exception relating to the oil and gas markets," wrote Bradley Holcomb, chair of the ISM manufacturing survey committee.

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