U.S. manufacturers expanded at a faster pace in December, boosted by a sharp increase in new orders.
The Institute for Supply Management says its manufacturing index rose to 59.7 last month from 58.2 in November. Any reading above 50 points to greater factory activity. Manufacturing has been expanding for the past 16 months.
“With a report like this, I can’t do anything but smile,” says Tim Fiore, chair of the ISM manufacturing business survey committee.
U.S. manufacturers have been helped this year by a solid global economy and a decline in the dollar’s value, which helps to make exports more competitive abroad. Firms will soon see whether the lower corporate tax rates signed into law by President Donald Trump will help to push profits and growth even higher.
New orders jumped in December to the highest level since January 2004. Production also rose. The pace of hiring slipped, although it remained positive.
