Official figures have confirmed that during the month of December the American manufacturing sector grew at its fastest pace recorded in about 4 long years, marking the fifth consecutive month of expansion, further suggesting that the country's economy is well on its path to growth and recovery.

The manufacturing data has coincided with the release of some other numbers of Mondays which revealed that world factory activity also expanded last month.

But some concerns for the US economy still remained as a separate report revealed that spending on construction declined in November, falling to an over 6 year low, on the back of a decline in homebuilding activity.

The main focus, however, was grabbed by the Institute for Supply Management's national factory index's growth to 55.9 points for the month of December, compared to November's figure of 53.6.

"This is what we need in 2010 for a V-shaped recovery", said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.

Stocks grew after the release of the growth report, led mainly by commodities and financial sector shares.