Factory activity at 5-month high as orders pick up, boosting the economy's outlook

Washington

US factory activity accelerated to a five-month high in November amid a pickup in new orders and production, offering more evidence that the economy gained further momentum early in the fourth quarter.

While other data on Thursday showed the number of Americans claiming unemployment benefits hitting a five-month high last week, labour market strength remains intact, with layoffs falling 12 per cent in November.

The Institute for Supply Management (ISM) said its index of national factory activity rose 1.3 percentage points to a reading of 53.2 last month, the highest since June. A reading above 50 indicates an expans…