American manufacturing is on a tear.
Data from both Markit and the Philadelphia Federal Reserve released on Thursday both soundly beat expectations.
The latest manufacturing report fom the Philadelphia Federal Reserve came in at 28.0, far better than the 19.7 that was expected.
This is the third straight month of increases for the index, and marks the highest reading for this index since March 2011.
The survey’s indicators of future growth also improved 8 points over last month and is at its highest reading since June 1992.
The report said that, “current indicators for labour market conditions suggested continued modest expansion in employment.” The reports employment index remained positive for the 14th consecutive month, those this index fell 3 points from the prior month.
Markit’s flash PMI report also came in stronger than expected. Markit’s August PMI came in at 58.0, beating expectations for a 55.7, and is the highest reading for the index in four years.
Following that report, Markit’s Tim Moore said: “Overall, with job hiring gathering momentum and input buying expanding at the sharpest pace for at least seven years, it seems US manufacturers are increasingly confident that the recovery is firmly back on track and are gearing up for a sustained rebound in production schedules over the months ahead.”
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