By Xavier Fontdegloria

Manufacturing activity in the U.S. expanded in November at the fastest pace in more than six years driven by faster upturns in output and new orders, data from a survey compiled by IHS Markit showed Tuesday.

The final reading for the U.S. Manufacturing Business Activity Index for November came in at 56.7, unchanged from the preliminary figure and above the 53.4 level in October.

Economists polled by The Wall Street Journal expected the indicator to tick down slightly from its preliminary reading to 56.5.

November's PMI figure shows that overall manufacturing activity continued to grow for the fifth consecutive month, as a level above 50 indicates expansion, and that the pace of this expansion accelerated in November compared with that of the prior month.

Manufacturing activity didn't expand at the current rate since September 2014, IHS Markit said.

Overall growth was supported by a rise in output and new orders amid stronger domestic and foreign client demand, said Chris Williamson, chief business economist at IHS Markit.

"Although demand for consumer goods remained somewhat subdued, mainly reflecting rising virus infection rates, demand for investment goods such as business equipment and machinery rose especially sharply" he said.

Contributing to the rise in the headline figure was a substantial increase in output at manufacturing firms in November. The rise in production was the steepest in more than six years, amid stronger new order inflows, the report said.

Goods producers registered a steep rise in new orders midway through the fourth quarter. The upturn was the quickest since May 2018, as growth of demand gained momentum, IHS Markit said.

Despite a faster upturn in new orders, manufacturers registered a softer increase in employment. The rate of job creation was only marginal overall.

Expectations regarding output over the coming year improved to the strongest since February 2015, as hopes of a vaccine and sustained increases in client demand reportedly drove optimism among the respondents.

"Confidence was boosted by encouraging vaccine news during the month, auguring well for life returning to normal at some point in the coming year, as well as hopes of increased stimulus spending and infrastructure investment following the election," Mr. Williamson said.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

December 01, 2020 10:14 ET (15:14 GMT)