The ISM factory index rose to 53.9 in December from 52.7 in November. The rise in the index was due to increasing demand for autos, strong retail sales and replenishing of inventories towards the end of the year. Manufacturing accounts for 12% of the GDP. Orders and production increased at the fastest paces since April. Economists say that a government tax credit may have contributed to an increase in business demand for equipment towards the end of the tax year. Companies are allowed to depreciate 100% of capital outlays in 2011 and 50% in 2012. December was also the best month for many auto manufacturers as sales grew at the fastest pace since August 2009. Read more
