The Associated Press

A private trade group says U.S. manufacturing activity grew at the fastest pace in more than three years, a sign the pace of recovery is picking up.

The Institute for Supply Management, a trade group of purchasing executives, says its manufacturing index read 55.9 in December after 53.6 in November. A reading above 50 indicates growth.

Analysts polled by Thomson Reuters had expected a reading of 54.3.

New orders, a signal of future production, jumped to 65.5 from 60.3 in November.

The index, which also includes production, employment, inventories and prices, first showed growth in August after 18 months of contraction.

Measures of manufacturing in the UK, the eurozone and China also grew in December.