Institute For Supply Management

U.S. factory output surged in December by the most in year. Stronger demand for business equipment, vehicles and energy offered the most visible evidence that manufacturing has roared back from the depths of the recession. The Fed said Wednesday that manufacturing increased 0.9% in December, the biggest gain since December 2010.

The manufacturing sector expanded for the 17th straight month in December, with new orders rising faster than inventories. When combined with improvements in other sector components, the data suggest the factory sector will continue to support the U.S. economy expansion through at least the first quarter of 2011.

A key U.S. manufacturing index unexpectedly dipped slightly in November, but it remained at a level that indicates that the industrial expansion continues. Led by export demand, the factory sector expanded for the 16th consecutive month.

Manufacturing activity in the mid-Atlantic region unexpectedly surged in November. The Philly Fed's Business Outlook Survey index jumped to 22.5 in November from 1 in October, its highest reading since December 2009.

The ISM services index grew at a better-than-expected pace in September, signaling continued economic growth -- and lowering the risk of a double-dip recession. Stock markets are reacting with a powerful surge.

Manufacturing activity slowed in September, but the sector continues to expand, the Institute for Supply Management said Friday. What%u2019s more, key component data for new orders point to weaker industrial growth in the fourth quarter, the group added.

Factory orders rose just 0.1% in July, the U.S. Commerce Department announced Thursday in a report that further clarified that the manufacturing sector's expansion slowed down this summer. While the statistic did indicate tepid growth, it was less than the 0.3% gain economists had predicted.

The Institute for Supply Management's July reading showed the vital U.S. services sector expanding faster in July, reducing the risk of a double-dip recession. July's data also point to an increase in hiring.

When the ISM's manufacturing reading is combined with its services reading, a different -- and far less positive -- picture of the U.S. economy emerges.

The June service sector report from the the Institute for Supply Management (ISM) shows slower growth heading into the second half of the year. The group's non-manufacturing index fell from a more robust reading in May. Despite the drop, the June number still indicates growth, just at a lower rate.