Manufacturing activity in the US in December recovered, reversing a decline in November, reports the Institute for Supply Management (ISM). According to ISM data, the manufacturing index in December was 51.4 - up from 49.5 in November.

This indicates a return to 41 months of continued growth till November. The institute says a number below 50 indicates a contraction in manufacturing. ISM attributes the recovery to an increase in orders and production and adds that inflationary pressures had also eased. New orders rose to 52.1 in December against 48.7 last month, while production increased to 51.8 compared with 48.7 in November.

Industrial activity in the month of November was hit by an increase in oil prices and falling home prices in addition to other factors.

However, ISM also said that employment in the month of December declined but by a a slower rate in the previous month.