Manufacturing activity in the U.S. continued strong growth in the last month of 2010 thanks to stronger exports even in the face of Europe’s debt crisis, according to Reuters. The Institute for Supply Management reported on Tuesday that its purchasing managers index was 57 in December, rising from 56.6 the month before and marking the 17th month the index has been above the 50 point indicator of expansion. The December figure was the highest in seven months, and suggests to many economists that the economic recovery is set to gain momentum in 2011.
The report was joined by data that showed the highest construction spending during November in five months, while the latest reading for new jobless claims in the U.S. during the last full week of 2010 showed an unexpectedly large decline. The unemployment rate in the U.S. remains at 9.8% in November, which is expected to continue to hold back the recovery in the coming year. Analysts with Goldman Sachs expect that inflation will remain low, but that the positive trend in the recovery means the Federal Reserve is unlikely to add to the $600 billion asset-purchase scheme due to expire in the middle of this year.