Increased manufacturing activity bodes well for the economy’s health as the year ends.
Manufacturing activity grew last month at the fastest pace since April 2011, beating economists’ estimates and highlighting an economy that seems poised to gain momentum despite budget battles in Washington, D.C.
A closely-watched index of the nation’s factories rose to 57.3% in November from 56.4% the previous month, the Institute for Supply Management said. The median forecast in a Bloomberg survey of economists was 55.1, Bloomberg News reported. A reading above 50% indicates the sector is expanding.
The index now has risen for the sixth straight month.
Most encouraging is that an index of new orders, which reflects future production, rose to 63.6 from 60.6. Measures of production and employment also rose sharply, with the employment index reaching the highest level since April 2012.
CONSUMER SPENDING: Rises in November
CONSTRUCTION SPENDING: Best pace in 4 years
Fifteen of 18 manufacturing sectors reported growth last month, including plastics, textile mills, furniture and primary metals.
Manufacturing has not slowed the past two months despite the 16-day government shutdown and the potential of another budget standoff over the next six weeks.

