Jeffrey Bartash for MarketWatch:  American manufacturers finished 2016 on a wave of optimism, as a survey of executives hit the highest level in two years.  The Institute for Supply Management said its manufacturing index climbed to 54.7% in December from 53.2%, slightly higher than the MarketWatch forecast. Any number above 50% signals expansion.

The index is compiled from a survey of executives who order raw materials and other supplies for their companies. The gauge tends to rise or fall in tandem with the health of the economy.

New orders and production surged in the final month of the year and plans for employment also edged higher. Bradley Holcomb, chairman of the ISM survey committee, said comments from executives were largely positive.  Cont'd...