US Manufacturing Grows At Fastest Pace In 2½ Years

WASHINGTON (AP) – U.S. manufacturing grew in November at the fastest pace in 2½ years as factories ramped up production, stepped up hiring and received orders at a healthy clip.

The Institute for Supply Management said Monday that its index of manufacturing activity rose to 57.3. That was up from 56.4 in October and was the highest since April 2011. A reading above 50 signals growth.

One component of the index, a measure of hiring, rose to its highest level in nearly 18 months. And a gauge of export orders reached its highest level in nearly two years. Overseas demand is benefiting from modest recoveries in Europe, Japan and China.

Manufacturing activity has now expanded for six straight months after hitting a rough patch in the spring. The steady gains suggest that growth is remaining healthy in the current October-December quarter.


U.S. Manufacturing Down In November

Manufacturing in the U.S. unexpectedly contracted in November as orders dropped to a three-month low and exports slowed.

The Institute for Supply Management‘s factory index decreased to 49.5, the lowest since July 2009, from 51.7 a month earlier, the Tempe, Arizona-based group said today.  Economists projected the index would ease to 51.4, according to the median forecast in a Bloomberg survey.  A reading of 50 marks the dividing line between expansion and contraction.

Less corporate investment in equipment as U.S. lawmakers debate the nation’s budget, weaker orders from overseas and disturbances related to the biggest Atlantic storm in history are converging to slow manufacturing.  Eleven of the 18 industries covered in the report reported business shrank last month.

“Manufacturing has slowed down,” Joshua Dennerlein, an economist at Bank of America Corp. in New York, said before the report.  “Manufacturers have to prepare for demand down the road, and they’re not actually sure what it’s going to be.”

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