US manufacturing activity sees 14 year high

U.S. manufacturing activity surged to its highest level in nearly 14 years in early January.

Bottlenecks in the supply chain caused by the COVID-19 pandemic, however, are driving up prices and signaling a rise in inflation in the months ahead.

Other data released on Friday showed an unexpected increase in sales of previously owned homes in December.

Manufacturing and the housing market are helping to anchor the economy, hit by a wave of coronavirus infections.

The pandemic is causing labor shortages at construction sites and factories, which could erode some of the strength in the manufacturing and housing sectors.