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Subscribe to RSSThe Institute for Supply Management (ISM) said Tuesday its Index of National Factory Activity for December showed a reading of 53.9 -- the best level since June.
A reading above 50 indicates growth in the sector.
Separately, U.S. construction spending surged to a near 1-1/2 year high in November as investment in public and private projects rose solidly, cementing expectations of strong economic growth in the fourth quarter.
Construction spending increased 1.2 percent to an annual rate of $807.1 billion, the highest level since June 2010, the Commerce Department said on Tuesday.
Spending in October was revised to a 0.2 percent fall, after initially reported as a 0.8 percent rise.
Economists polled by Reuters had expected construction spending to rise 0.5 percent in November.
Overall construction spending was up 0.5 percent compared to November 2010.
Private construction spending rose 1.0 percent, advancing for a fourth straight month. Spending on residential projects increased 2.0 percent, with solid gains in both multifamily and single family homes.
The housing market is showing some signs of recovery, with builders breaking more ground on new projects to meet growing demand for rental apartments. It is becoming less of a drag on the economy and is expected to significantly add to growth in 2012.
Private nonresidential construction was flat in November after declining 0.6 percent the prior month.
Spending on public sector construction rebounded 1.7 percent in November as outlays on federal projects jumped 5.3 percent after dropping 7.5 percent in October.
State and local government spending rose 1.3 percent after falling 1.2 percent the prior month.
The Associated Press and Reuters contributed to this report.
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".....cementing expectations of strong economic growth in the fourth quarter." My guess is these folks now said to have strong expectations of strong economic growth in the fourth quarter will next be quoted as ".......surprised by unexpectedly tepid growth in the fourth quarter."
You can almost set your watch (or your iPhone) by statements like that.
What do you mean "almost"???? Another Laugher by the Media.
Stop whining, the recovery is happening, particularly in Germany. It now has the lowest unemployment level since the 1991 reunification!
And we are getting a better manufacturing base going in the United States also that will take off in the next six months as long as Europe stays out of the way.
We think money will be invested at a record pace this next year. whirpool that last year cut jobs is now moving a plant from china back to the US, and others will begin to follow. there will be lots of adjustments as comanies focus on the road ahead. Internet compaines will roll out more broad band. There will be compltion of several major construction projects by mid year that will provide growth. Housing wil begin to mkake come back in the south west as mortgage loans unfreeze.
Credit card companies are already begging mew market compaigns-which is a good sign.