and wire reports

U.S. manufacturing expanded in November as new orders and production improved, but weakness in employment suggested that industrial jobs may not be as plentiful in coming months.

However, recreational vehicle manufacturing in south-central Idaho is still adding jobs.

"We just finished hiring some new people and in about six months we plan to hire about 60 more,"said Dave Yoder, general manager of Jayco Inc., which already employs about 280 workers in its three manufacturing plants.

The company will need additional employees to meet increasing demand for it recreational trailers. Jayco's facilities in Twin Falls currently produce 19 units per day, however, it plans to produce 23 units per day by February.

According to the RV Consumer Group, a non-profit group that monitors the industry, almost all RV manufacturers are seeing increased sales in lower- to mid-priced RVs - likely due to the higher cost of family recreational activities that require lodging, transportation and meals.

However, not all sectors of the manufacturing industry see the same increases.

The Institute for Supply Management, a Tempe, Ariz.-based trade group, said Monday that its manufacturing index registered 50.8 last month, down from 50.9 in October. A reading above 50 indicates growth; below that spells contraction.

The November results, which marked the 10th consecutive monthly expansion. were slightly stronger than the 50.1 expected by analysts polled by Thomson/IFR Markets.

"While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month," Norbert Ore, chairman of the institute's business survey committee, said in a statement. "Prices, driven higher by energy prices, are once again the major concern."

Wall Street stocks briefly dipped after the report was released because signs of economic strength could reduce the chances the Federal Reserve will cut rates at its Dec. 11 monetary policy meeting.

But the stock declines were limited as investors turned their attention to remarks by Treasury Secretary Henry Paulson, who reaffirmed a plan to try to stabilize the mortgage market by reducing foreclosures on adjustable rate mortgages.

The manufacturing report showed a decline in the employment index to 47.8 from 52.0, indicating manufacturing jobs are contracting, according to Doug Porter, deputy chief economist at BMO Capital Markets.

"The one concern in the report is the steep drop in the employment index to a ready below 50," Porter said. The weak result could foreshadow a disappointing national employment report on Friday, he added.