The US manufacturing sector expanded in December at the fastest pace in six months, in another sign of firmer economic growth in 2011’s final quarter.
The Institute for Supply Management’s purchasing managers’ index rose to 53.9, the highest reading since April. Readings above 50 indicate expansion. “[The report] suggests improvement in the overall macroeconomic environment or at least sentiment”, said Holden Lewis, industrial analyst for BB&T Capital Markets. But with “flattish” economic conditions around the globe, he said the trend would have to continue through February to suggest a more meaningful recovery was under way.
Stocks added to early gains on the report. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite were all up at least 1 per cent.