U.S. factories boosted output last month and December ended up being their best month of growth in five years. Strong auto sales and growing business investment in machinery and other equipment are keeping factories busy and helping the economy grow.
U.S. factories grew in January at the fastest pace in seven months, boosted by a rise in new orders. And builders ended a poor year for construction by spending more on homes and projects for the fifth straight month. The reports bolster other data showing the U.S. economy started the year strong.
Orders for factory-made goods that signal business investment plans fell for a second straight month, part of a mixed report on manufacturing in November. The drop in demand for so-called core capital goods was offset by a sharp rise in volatile airplane orders. That lifted overall factory orders 1.8 percent, the Commerce Department said Wednesday.
It's easy to be pessimistic these days. Libya's civil war, surging oil prices and the disaster in Japan have combined forces to send financial markets tumbling. But the cold, hard facts about the economy paint a more optimistic picture.
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.