American manufacturing expanded slightly in November; construction spending dipped

U.S. manufacturing grew marginally last month and hiring increased after having shrunk in November. The modest gain suggests the economy entered the new year with some momentum. The Institute for Supply Management says that its index of manufacturing activity rose to 50.7 in December from 49.5 in the previous month. November’s reading was the lowest reading since July 2009, one month after the recession ended. A reading above 50 signals expansion. A measure of employment rose to the highest level in three months, suggesting that factories are adding jobs. There have been some other positive signs for factory output. In November, companies substantially increased their orders for a category of large equipment that reflects their investment plans. That followed a big increase in the same category in October. At the same time, U.S. builders spent less on construction projects in November—the first decline in eight months—as activity was held back by a big drop in spending on federal projects. Construction spending dipped 0.3% in November compared with October, when spending had risen a revised 0.7%, the Commerce Department says in a report released this morning. More details on the construction report can be found in the full story here.