Manufacturing grows at fastest pace in 6 months

U.S. manufacturing grew at the fastest clip in six months in December, while hiring at U.S. factories also picked up. The data bolsters the view that the economy gained momentum at the end of last year. The Institute for Supply Management, a trade group of purchasing managers, announced today that its manufacturing index rose to 53.9 from 52.7 in November. Readings above 50 indicate expansion. U.S manufacturing has expanded for more than two years. Factories were one of the first areas of the economy to start growing after the recession officially ended in June 2009. The latest ISM survey shows that U.S. factories should start the year strongly. Factories hired last month at the fastest pace since June, the survey found. A measure of new orders rose, a good sign for future output. And exports also increased last month, though it’s not clear how long that will last. Europe’s economy is faltering amid a debt crisis. Meanwhile, the number of people applying for unemployment benefits each week is dropping steadily, evidence that companies are cutting fewer jobs. Weekly applications have dropped by 10% in the past three months. Employers are hiring more workers, too. The economy generated an average of 143,000 net jobs a month from September through November. That’s almost double the pace seen in the previous three months. Read the full story from The Associated Press here.