US factory activity hit 2-year high in December
WASHINGTON — U.S. manufacturing activity expanded in December to its highest level in two years, as new orders and production jumped in a positive sign for economic growth.
The Institute for Supply Management said Tuesday that its manufacturing index came in at 54.7 last month, up from 53.2 in November and the highest reading since the end of 2014. Any reading over 50 signals growth.
“This morning’s report indicates that US manufacturing activity ended 2016 on a high note,” said Rob Martin, an economist at Barclays bank.
U.S. factories are steadily rebounding from a rough patch hit in late 2015 and early 2016. A prior decline in energy prices caused cutbacks in orders for equipment and pipelines, while a stronger dollar and slower economic growth abroad hurt exports.