U.S. manufacturing cools, but underlying momentum remains

WASHINGTON (Reuters) - U.S. factory activity moderated in November, but sustained gains in new orders and a rebound in export orders suggested the economy remained on a firmer footing despite slowing global growth.

The Institute for Supply Management (ISM) said on Monday its index of national factory activity fell to 58.7 last month as the pace of restocking slowed. The index had touched a three-and-a-half year-high of 59 in October.

A reading above 50 indicates expansion in the nation's manufacturing sector.

"The ISM report continues to show U.S. manufacturing sector momentum on a firmer footing heading into the penultimate month of the year, though market attention is likely to remain split between the stronger domestic growth story and lower global growth expectations," said Gennadiy Goldberg, an economist at TD Securities in the New York.

In a separate report, financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index fell to 54.8 in November, the lowest reading since January, from 55.9 in October.

The Markit survey has a short history, which makes it a less reliable gauge of U.S. manufacturing activity. Domestic factories appear to be weathering a cooling global economy.

Manufacturing growth across Asia and Europe eased in November, reports showed on Monday.

U.S. stocks were trading lower on concerns about the global economy, while prices for shorter-dated U.S. Treasury debt were little changed. The dollar fell against a basket of currencies.

The ISM survey showed new orders increased to their highest level since August, while export order growth also accelerated last month.

"There is no sign that the stronger dollar and/or the weakness seen globally is negatively impacting manufacturing in the U.S.," said Michelle Girard, chief economist at RBS in Stamford, Connecticut.Factory employment measures ebbed a bit in November but remained consistent with solid job growth. Falling commodity prices, especially crude oil, saw a gauge of prices paid by factories falling to its lowest level since July 2012.

(Reporting by Lucia Mutikani; Additional reporting by Sam Forgione in New York; Editing by Paul Simao)