Conditions in the U.S. manufacturing sector improved in December at the fastest rate of the year, according to the Markit U.S. Manufacturing Purchasing Managers' Index.
The index, at 55.0, was up from 54.7 in November and above the earlier estimate of 54.4 expected for December.
According to Markit, the number indicates a solid rate of expansion.
The PMI averaged 53.8 in the three months prior to December.
The rate of growth was well above the series average and the fastest since March 2012, according Markit.
All three market groups (consumer, intermediate and investment) posted higher levels of output in December, with manufacturers of investment goods posting the fastest rate of increase.