-Bradley Holcomb, ISM
Growth in the US economy's manufacturing sector improved more than expected last month, official figures revealed on Tuesday. The Institute of Supply Management reported its Purchasing Managers' Index advanced to 54.7 in December, surpassing analysts' expectations for 53.7 points. Back in November, the Index climbed to 53.2 from October's 51.9 points. This was the fastest pace of growth seen in five months. Any reading above the 50 point level indicates expansion in the manufacturing sector. Of the 18 manufacturing sectors, 11 reported growth last month, according to Bradley Holcomb, chair of the ISM Manufacturing Survey Business Committee.
Other data released on the same day by the Department of Commerce showed that construction spending grew 0.9% to $1.18 trillion in November, the highest point since April 2006, compared to the previous month's upwardly revised gain of 0.6%. In the meantime, economists expected construction spending to rise just 0.5% in the reported month. The November reading together with the October upwardly revised figure could prompt analysts to revise up their overall US economic growth forecasts for the last quarter of 2016.
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