TEMPE, Ariz. (

TheStreet

) -- A primary measure of the nation's manufacturing segment showed its best reading in over five years last month, suggesting factory activity expanded at a far faster pace than expected.

An index reflecting a poll of purchasing managers rose to 58.4 in January, according to the Institute for Supply Management. A mark above 50 tends to denote expansion at the nation's manufacturing firms, while a reading below 50 suggests contraction. The January tally both outpaced Street estimates calling for a rise to 55.5, and marks the index's best showing since August 2004.

"This month's report provides significant assurance that the manufacturing sector is in recovery," Norbert J. Ore, chair of the ISM, said in a release. "This month, 13 of 18 industries reported growth, up from nine industries last month, and this is a good indication that the impact of the recovery is expanding."

The manufacturing index hit 54.9 in December.

New orders, employment and production improved in January, according to a series of subordinate measures. The new order index rose 1.1 points to read 65.9. The employment index registered 53.3 in January after posting 50.2 in December, while the production index improved 6.5 points to 66.2.

Stocks pepped up after the release. The

Dow Jones Industrial Average

recently added 96 points, or 1%, to 10,164.

Gains for several manufacturing concerns were helping prop up the blue-chip average.

Alcoa

(AA) - Get Report

,

Exxon Mobil

(XOM) - Get Report

,

Caterpillar

(CAT) - Get Report

and

IBM

(IBM) - Get Report

were improving 3%, 2.1%, 1.8% and 1.5%, respectively.

--Written by Sung Moss in New York