U.S. manufacturing output in December increased at its fastest pace since March 2012, according to Markit, a global financial information company.

U.S. manufacturing output in December increased at its fastest pace since March 2012, according to Markit, a global financial information company.

In addition, a broad indicator of the health of the economy, the Purchasing Managers’ Index, rose to an 11-month high, indicating stronger confidence in business conditions, Markit said. Employment growth hit a nine-month high and there was a strong increase in new orders.

PMI was measured at 55.0, up from 54.7 in November and above the earlier estimate of 54.4, Markit said, indicating “a solid rate of expansion.” Readings above 50 show the sector in expansion mode.

Employment also continued to gain. “Manufacturing employment in the U.S. continued to increase in December, taking the current sequence of job creation to six months,” Markit said.

“The upturn in the PMI in December rounds off one of the strongest quarters for manufacturing since the

economy pulled out of recession. The goods-producing sector is therefore on course to provide a firm boost to the economy in the fourth quarter, which we expect to see growing at an annualised pace of at least 3 percent,” said Chris Williamson, Chief Economist at Markit.

“Most encouraging is the fact that growth is being led by rising demand for investment goods such as plant and machinery. This tells us that business spending is picking up on the back of rising confidence, which adds to the sense that the recovery is being more self-sustaining,” Williamson added.

———

©2014 the Dayton Daily News (Dayton, Ohio)

Visit the Dayton Daily News (Dayton, Ohio) at www.daytondailynews.com

Distributed by MCT Information Services