Manufacturing, construction picked up pace in November

Manufacturing grew for the 28th straight month and faster than it has since June, a report showed Thursday. 

The Institute for Supply Management's manufacturing index increased to 52.7 percent in November, up from 50.8 percent in October. The index's most recent high was 55.3 percent. Earlier in the year the sector was expanding above 60 percent each month before the economy hit a rough patch in the early summer. 

Any reading above 50 indicates expansion.

Meanwhile, in a separate report, construction spending increased 0.8 percent in October to a seasonally adjusted annual rate of $798.5 billion, the Commerce Department said Thursday. 

The bad news, builders are spending 2.9 percent less than the subpar levels of last year. 

Builders are still struggling to recover from the collaspe of the housing sector, which is weighing heavily on a more robust economic recovery. 

Factories picked up pace last month behind an increase in new orders, up to 56.7 percent from 52.4 percent in October while the production indiex was up 6.5 percentgage points to 56.6 percent from 50.1 percent, growth for the third consecutive month after just one month of contraction. 

Inventories also grew at a slightly faster pace, up to 48.3 percent in November from 46.7 percent.

The ISM report also showed that employment expanded at a slower pace  — down 1.7 percentage points — to 51.8 percent from 53.5 percent, the 26th consecutive month the index has been above 50 percent. 

Of the 18 manufacturing industries, eight reported growth in employment in November. 

Prices contracted for the second straight month although the index was up to 45 percent from 41 percent in October.