Manufacturing and business activity in parts of the United States improved in November, data showed on Monday, keeping the economy on track for recovery, though continued weakness in the labor market will constrain growth, economists said.

Business activity in the Midwest and in New York City expanded more than anticipated in November, according to regional reports from the Institute for Supply Management.

&S220;This is good news, and another statistic that supports the scenario that we&S217;re clawing our way out of the abyss. This is clearly reflective of an economy, at least on the manufacturing side, that is starting to heal,&S221; said Ned Riley, chief executive of Riley Asset Management in Boston.

&S220;There&S217;s optimism here that this will improve the outlook for manufacturers. The only question is, manufacturers can make the goods, but will consumers buy them?&S221; he added.

The Institute for Supply Management-Chicago business barometer grew faster than anticipated in November, rising to 56.1, above the 50 mark that denotes expansion.

The Chicago report showed employment still in the doldrums, said Scott J. Brown, chief economist with Raymond James and Associates in St installment payday loans. Petersburg, Fla. &S220;Consumer finances are still strained and the labor market is weak.&S221;

The Federal Reserve Bank of Chicago said on Monday its Midwest manufacturing index, which covers five Midwestern states, rose in October to the highest level since February but was sharply down compared with a year ago amid weak economic conditions.

The index rose to a seasonally adjusted 82.9 from an upwardly revised 82.5 in September. Compared with a year earlier, Midwest output fell 13.6 percent, much steeper than the 7.5 percent national decline.

In New York City, business activity expanded in November for the fourth consecutive month, and a gauge of business optimism rose to its highest point in more than three years.

The Institute for Supply Management-New York&S217;s seasonally adjusted index of current business conditions rose to 62.9 in November from 60.8 in October. The 50 level separates growth from contraction.

Manufacturing Improved in November