A report shows that the pace of growth in the US manufacturing sector picked up in November to reach its strongest level since June.
The Institute for Supply Management (ISM) said its index of national factory activity rose to 52.7 from 50.8 the month before. This was better than the 51.5 expected by most economists.
A reading above 50 indicates expansion in the manufacturing sector, while a number below 50 means contraction.
The new orders index rose to 56.7, its highest level since April, from 52.4. But the employment gauge lost some steam, falling to 51.8 from 53.5.
US weekly jobless claims rise again
New claims for US unemployment insurance rose slightly for the second week in a row, the government said today, a day ahead of the November jobs market data.
The number of people registering for jobless benefits rose to 402,000 in the week ending November 26, the Labor Department said. The department upwardly revised the prior week's number to 396,000 claims.
Most analysts expected claims to fall last week amid an easing trend in the weekly data. The four-week moving average, which helps to smooth volatility, rose by only 500 from the prior week to 395,250.
The sluggish US economy is not growing enough to make a significant reduction in high unemployment as the labor force continues to expand. But the claims numbers suggested the ailing labour market has stabilised.
Economists expect the Labor Department tomorrow will report the unemployment rate was unchanged at 9% for the second month running in November. Since May 2009 the jobless rate has been stuck at 8.8% or higher.
Most analysts expect the data will show that the economy generated a net 123,000 jobs in November: 141,000 from the private sector offset by a net 18,000 layoffs in the public sector.
