Factories post fastest growth in two years

WASHINGTON — American factories grew last month at the fastest pace in more than two years. The Institute for Supply Management said Wednesday that its manufacturing index came in at 56.0 in January, up from 54.5 in December. Anything above 50 signals growth. Manufacturing has now grown for five straight months and for 10 of the last 11 months. Factories said that new orders, production and hiring grew faster in January. Export orders grew last month but at a slower pace than they did in December. Twelve of 18 manufacturing industries reported growth in January, led by plastics and rubber manufacturers.

Construction activity slips a little in December

WASHINGTON — U.S. builders trimmed spending slightly in December as a gain in private projects was offset by a big drop in spending on government projects. Construction spending fell 0.2 percent after hitting the highest point in more than a decade in November, the Commerce Department said Wednesday. Spending on private projects actually kept rising in December, climbing by 0.2 percent. But government activity fell 1.7 percent, reflecting cutbacks at the state and local level. The strength last month came in housing construction, which jumped 0.5 percent, with gains in single-family homes and apartments. Spending on nonresidential activity was flat as spending on hotels, factories and transportation projects all declined. Economists are looking for housing construction to be a key sector supporting overall economic growth in 2017. Construction of single-family homes rose 0.5 percent in December, while the smaller and more volatile apartment sector jumped 2.8 percent.

Survey: Businesses add 246,000 jobs in January

WASHINGTON — U.S. companies ramped up hiring in January, adding the most new workers since June, according to a private survey. Payroll provider ADP said Wednesday that businesses added 246,000 jobs last month, up from 151,000 in December. The hiring was widespread, with the construction, manufacturing, health care and shipping industries all adding jobs at a solid pace. The figures suggest that job gains have accelerated after a sluggish patch in the second half of last year. With the unemployment rate already low, at 4.7 percent, employers may be forced to offer higher pay to attract workers, which could create broader income growth. The ADP data cover only private businesses and often diverge from official figures. Economists forecast that the government’s jobs report, due Friday, will show a gain of 175,000, according to data provider FactSet. That figure may rise in the aftermath of the ADP report. Ted Wieseman, an economist at Morgan Stanley, boosted his forecast for the government’s jobs report to 220,000 from 205,000. Wieseman also noted that fewer people have sought unemployment benefits this month, a proxy for layoffs.