U.S. Factory Activity at Highest Level Since 2018

Factory activity in the United States expanded to its highest level in nearly two and a half years during December, with the American economy recovering from the impact of the Coronavirus pandemic.

The pandemic is reportedly leading to increased demand for goods compared with services, however, the rising number of new cases and potential lockdown measures are challenging to supply chains.

Data by the Institute for Supply Management (ISM) showed on Tuesday that the index of national factory activity registering a reading of 60.7 in the last month of 2020.

The reading is the best monthly level recorded since August 2018, according to Reuters.

It came following a reading of 57.5 in November.

It is worth noting that manufacturing accounts for 11.9% of the American economy.

Moreover, the supplier deliveries index recorded 67.6 in December, up from 61.7 in November.