Economic activity in the manufacturing sector expanded in December at a faster pace than November, according to the Institute for Supply Management’s purchasing managers index for US manufacturing. December’s index reading was 59.7, up 1 from November’s reading of 58.2.

Any reading above 50% generally indicates improving conditions.

However, the employment portion of the index fell to a reading of 57.0 in December from 59.7 in November.

“Comments from the panel reflect expanding business conditions, with new orders and production leading gains; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow in December,” said Timothy Fiore, chair of the Institute for Supply Management manufacturing business survey committee.

Reuters reported the economy’s robust fundamentals were also underscored by other data on Wednesday showing construction spending rising to a record high in November amid broad gains in both private and public outlays.