December data indicated a marked improvement in USA manufacturing operating conditions. In spite of recovery in new order volumes in December, construction companies showed a subdued degree of positivity about the business outlook for the next 12 months.
Jobs growth quickened to the fastest since September and stronger than the series trend.
In the USA, the IHS Markit PMI rose to 55.1 from 53.9 in November, while the euro-area index was at a record 60.6.
The composite output index rose to 58.1 in December from 57.5 in November, final data from IHS Markit showed Thursday. The growth in the sector was attributed to improved demand conditions in sectors like information & communications and finance & insurance. Exports sales, however, grew at a marginal pace.
India's retail inflation in November breached the central bank's medium-term target of 4 percent, which could put pressure on it to raise policy rates in the coming months.
Greater production requirements also impacted purchasing activity which increased at the fastest pace since February.
Input costs remain elevated across a number of economies, partly reflecting higher raw material prices.
The country's manufacturing sector witnessed higher payroll figures in December while the rate of job creation rose to its highest since August 2012. "That said, it remained on a weak growth trajectory amid reports that the goods and services tax (GST) was still hindering efforts to secure new clients", said Aashna Dodhia, economist at IHS Markit and the author of the report. Output growth accelerated to its fastest since the start of the year on the back of a marked upswing in demand as the year came to a close. The upbeat mood is underscored by an increased appetite to hire new staff, with the survey indicating that factory payroll numbers are rising at a rate not seen for over three years.
"All in all, then, the latest data suggests that the economy maintained a decent amount of momentum in Q4, which we expect to be built upon in 2018".