Recent news on durable goods orders was terrible, but perhaps it was an aberration. This news on manufacturing activity paints a more positive picture.

U.S. manufacturing unexpectedly expanded in September for the first time since May as new orders and employment picked up, but the pace of growth showed the economy was still stuck in a slow recovery.

The Institute for Supply Management said on Monday its index of national factory activity rose to 51.5 from 49.6 in August.

“We’re not quite at the point where things are good, but this indicates strongly that things are not so bad,” said Adam Sarhan, chief executive of Sarhan Capital in New York.

It was the first time since May that the index has been above the 50 threshold that indicates expansion in the sector.

The forward-looking new orders gauge also rose to its highest level since May at 52.3 from 47.1, while employment gained to 54.7 from 51.6.

Overall the news is choppy as the economy struggles to gain traction, but perhaps this good sign can help build momentum.

Here’s more good economic news.

U.S. factory output surged in December by the most in any month in 2011, offering the most visible evidence yet that manufacturing is roaring back from the recession’s depths even as declining prices at the wholesale level shows inflation remains in check, according to two reports out Wednesday.

Stronger demand for business equipment, vehicles and energy drove the 0.9% increase in manufacturing output, the biggest monthly increase since December 2010. And a larger portion of U.S. factories were operating, the Federal Reserve said Wednesday in a report on the nation’s industrial production.

Overall output of the nation’s factories, mines and utilities grew 0.4% in December although warm weather dampened demand for energy produced by utilities.

Industrial output is now less than 5% below its pre-recession peak, reached in September 2007. It has increased more than 14% since hitting a recession low in June 2009.

We’re seeing improvement in the job numbers as well, so hopefully we’re now on a positive business cycle.