Growth in Manufacturing to Help Propel U.S. Expansion: Economy
By Shobhana Chandra - Jan 2, 2014
Manufacturing grew in December at the second-fastest pace in more than two years, fueled by a gain in orders that will help propel the U.S. expansion.
The Institute for Supply Management’s factory index eased to 57 from the prior month’s 57.3, which was the highest since April 2011, the Tempe, Arizona-based group said today. Readings above 50 indicate growth. Other data showed construction spending rose more than forecast in November and jobless claims declined last week.
Factory purchasing managers said orders were the strongest since April 2010, helping explain why companies such as General Motors Co. (GM) and Ford Motor Co. (F) are taking on more workers in response to rising sales. Recovering overseas economies, a pickup in business investment and greater demand for building materials are providing additional impetus for manufacturing, which makes up about 12 percent of gross domestic product.
“The year ended in a pretty bright spot for manufacturing and domestic demand,” said Peter Newland, a U.S. economist in New York at Barclays Plc, who correctly forecast the December ISM index. “Business activity, consumption and construction spending are all beginning to point in the same positive direction.”
Outlays for construction projects climbed in November to the highest level since March 2009 as homebuilding and non-residential spending made up for government cutbacks, figures from the Commerce Department also showed today.
more...
http://www.bloomberg.com/news/2014-01-02/u-s-ism-manufacturing-index-fell-to-57-in-december-from-57-3.html