WASHINGTON: The US manufacturing sector picked up its pace in January, pulled along by a surge in the growth of new orders, according to a closely watched index released Wednesday.

The Institute for Supply Management\'s manufacturing index rose to 54.1 percent from 53.1 in December.

The new orders component jumped to 57.6 from 54.8, while inventories continued to contract, though just barely.

But raw materials prices were also on the march, the sub-index rising to 55.5 from 47.5 in November, when prices were declining.

\"Manufacturing is starting out the year on a positive note, with new orders, production and employment all growing in January,\" ISM said.

Separately the Commerce Department said construction spending picked up 1.5 percent in December from November, and was 4.3 percent higher than a year earlier.