By Blake Ellis, CNN Money, January 3, 2011

Manufacturing activity expanded for a 17th month in a row in December, rising to the highest level in seven months, a purchasing managers' group said Monday.....

"We saw significant recovery for much of the U.S. manufacturing sector in 2010," said Norbert Ore, chairman of the ISM Manufacturing Business Survey Committee, in a statement. "The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle."

Strong global demand and a weaker dollar has also helped boost manufacturing activity, said Ore....

Also see

2011: A hiring boom, even at 9% unemployment
By Chris Isidore, CNN Money, January 3, 2011

...After three years of economic pain, a growing number of economists think 2011 will finally bring what everyone's been hoping for: More jobs and a self-sustaining recovery....

and Krugman's worries about all of this in his column today:

Deep Hole Economics
By Paul Krugman, New York Times op-ed, January 2-3, 2011

...Even though we may finally have stopped digging, we’re still near the bottom of a very deep hole....I've noticed many people overreacting to recent good economic news. What particularly concerns me is the risk of self-denying optimism....