U.S. manufacturing activity is at its highest level since May 2010.
According to Markit, the U.S. Flash manufacturing purchasing managers index (PMI) unexpectedly jumped to 57.5 in June from 56.4 in May.
“U.S. industry is booming again,” said Markit’s Chris Williamson.
“The latest rise in the headline PMI was driven by the fastest output and new orders growth for just over four years,” reported Markit.
Economists surveyed by Bloomberg expected this activity index to fall to 56.0.
Here are the key points from Markit:
- Output and new orders rise at faster rates in June
- Solid increase in payroll numbers
- Cost inflation hits five-month high
“The strong reading also rounds off the best quarter for factories for four years, adding to indications that the US economy rebounded strongly in the second quarter from the weather-related weakness seen at the start of the year,” said Williamson. “The survey data suggest that GDP should be set to rise by at least 3.0% after the 1.0% decline in the first quarter.”