Factories weathering virus storm

American factories grew in December at the fastest pace in more than two years as manufacturing continued to weather the pandemic better than the battered services sector.

The Institute for Supply Management reported Tuesday that its gauge of manufacturing activity rose to 60.7 percent last month, the highest reading since it stood at 60.8 in August 2018. The gauge was up 3.2 percentage points from a November level of 57.5.

Any reading above 50 indicates expansion in the manufacturing sector.

The U.S. economy collapsed from April through June but since that time manufacturing has posted solid gains, while the services sector, which includes restaurants, bars and the travel industry, has been harder hit.

While manufacturing has recovered since spring, Timothy Fiore, chair of the ISM manufacturing committee, said that it continues to face virus-related headwinds such as factory shutdowns needed to sanitize facilities and difficulties in hiring new workers as the virus again surges in the U.S.

Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said that activity at

U.S. factories in coming months would be exposed to “broadening containment measures that could disrupt and weigh on demand in the U.S. and abroad.”

Douglas R. Clifford / Associated Press Zeida Hernandez of Tampa, Fla., left, makes Factory Throwout cigars. U.S. factories grew in December at fast pace.