The U.S. manufacturing purchasing manager’s index climbed to 54.7, up from 51.8 in October and beat analysts expectations for an unchanged reading.
It was the strongest improvement since January, although the three-month average remined broadly in line, with production continuing at an annualized growth rate of 2.5% a month.
Output jumped the most in 20 months, and new order growth also accelerated sharply.
“One of the most encouraging trends we are seeing…is a surge in the production of capital goods such as plant and machinery, which is growing at the fastest rate since the financial crisis, fuelled by rising domestic demand. This is a great sign that companies are feeling sufficiently confident to be boosting investment,” Markit Chief Economist Chris Williamson said.
But the employment index slowed.
“…While employment rose in SMEs, it is larger firms that are driving job creation,” he said.
Here’s the full score:
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