U.S. factory output rises
Increase follows better-than-expected holiday retail sales
U.S. manufacturers increased output for the 17th consecutive month in December, the Institute for Supply Management reported Monday.
The ISM's widely watched index of manufacturing activity rose to 57 from 56.6 in November.
A reading above 50 indicates growth. Economists had expected the index to increase to a reading of 57.2.
"The recovery centred on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle," the Institute said in a statement.
"Additionally, manufacturers that export have benefited from both global demand and the weaker dollar," it said.
The increase in factory output followed greater consumer spending, as stores sought to replenish their stockpiles of electronic goods, appliances and other consumer goods.
American shoppers tempered their concerns about the sluggish economy this holiday season and hit the malls in large numbers.
Consumer spending, excluding autos, rose in November and December by the most since 2007, according to MasterCard Advisors' SpendingPulse.
The index's most recent high, reached in April, was 60.4. That was its highest level since June 2004. It had bottomed out at 32.5 in December 2008, the lowest since June 1980.
The ISM surveys purchasing managers at about 350 companies around the country to compile the index.
With files from The Associated Press