US manufacturing surprises to the upside in December, PMI shows

Manufacturing sector activity in the US surprised to the upside at the end of 2020.

The Institute for Supply Management's factory sector Purchasing Managers' Index improved from November's print of 57.5 to 60.7 in December.

Economists had been expecting a dip to 55.7.

A jump in output levels, slower deliveries and bigger price increases were the chief factors behind the higher PMI reading for last month.

The sub-index which tracks production rose from 60.8 to 64.8 while that linked to supplier deliveries jumped from 61.7 to 67.6, with the rise in the latter meaning that deliveries slowed.

Price pressures were also evident, with the subindex tracking those rising from 65.4 to 77.6.

Order backlogs also increased, with the corresponding subindex increasing from 56.9 to 59.1.