Companies expanded more than anticipated in December as orders and employment grew, Bloomberg reported today, based on the results of a survey of businesses.

The Institute for Supply Management-Chicago Inc. said its business barometer rose to 60, exceeding the most optimistic estimate of economists surveyed by Bloomberg and the highest level since January 2006. Readings above 50 signal expansion.

Fueled by government incentives and discount pricing, rising global demand has reduced stockpiles, which may prompt manufacturers to boost production in early 2010. The accompanying increases in the workweek and employment may boost incomes enough to support additional gains in consumer spending, which accounts for 70 percent of the economy, Bloomberg said.

“Manufacturing is now moving into recovery,” said David Sloan, senior economist at 4Cast Inc. in New York, whose estimate was the highest among economists surveyed by Bloomberg. “Inventories are rebuilding, and exports are looking strong, with the Asian economies looking firmer and the dollar weak.”

Economists had projected the Chicago index would drop to 55.1 from 56.1 in November, based on the median estimate of 53 projections in a Bloomberg survey. Forecasts ranged from 52 to 58.5.

The Institute for Supply Management’s factory index is due Jan. 4 and is expected to show a slight increase, Bloomberg said.

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