Manufacturing activity grew more rapidly in Nov.

Manufacturing activity grew more rapidly in November as both new orders and production picked up, but employment fell in a sign the sector continues to shed jobs.

An index of factory activity rose to 53.2 from 51.9 in October, the Institute for Supply Management said Thursday. A measure above 50 means the sector is expanding; below signifies contraction. Economists expected a smaller increase to 52.3.

Manufactures have struggled amid an oil industry slump, as well as weak exports tied to a listless global economy and strong dollar that makes U.S. products more expensive abroad. Rising oil prices have bolstered energy investment recently. But the greenback has strengthened in recent months after stabilizing earlier this year, raising the prospect of renewed woes for factories.

In November, the production index increased to 56 from 54.6. And a measure of new orders, a gauge of future output, rose to 53 from 52.1

But the employment index fell to 52.3 from 52.9, possibly foreshadowing continued factory job losses in the government’s payroll report on Friday. Payroll processor ADP this week estimated that manufacturers cut 10,000 jobs last month.

Of 18 sectors, 11 reported growth, including computer and electronics, paper products, chemicals, fabricated metals plastics, and machinery. Those contracting included apparel, wood products, electrical equipment, appliances and furniture.

"Overall, this morning’s report supports our view that manufacturing is likely to stabilize after the weakness early in the year," Barclays economist Rob Martin wrote in a note to clients..