US Manufacturing Grows Faster Than Expected

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Photo: Spencer Platt/Getty Images

UPDATE:Manufacturing in the U.S. expanded at a faster-than-anticipated clip in August but remained near recent lows hit earlier this summer, new data out of Markit Economics shows.

The key business activity index improved 50 basis points from the July print, hitting 51.9.

A reading above 50 indicates expansion.

New orders and output from the nation’s factories jumped in the newest report, hitting 52.6 and 52.4, respectively.

“Reflective of the increase in new orders, backlogs of work rose for the first time in three months during August,” Markit said in its statement. “Stocks of finished goods meanwhile were depleted, in contrast to the accumulation reported one month previously. 

Employment in the manufacturing sector also rose during the month, but did so at a lower pace than in July.

Below, key output from the report:

Markit August Flash PMI

Photo: Markit Economics

Markit August Flash PMI

Photo: Markit Economics

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Minutes away from the flash U.S. PMI report for August.

Economists polled by Bloomberg forecast a slight increase in the headline reading, with the composite index improving 10 basis points to 51.5.

At that pace, it would represent modest growth in the manufacturing and industrial sector. A reading above 50 indicates expansion.

The announcement is scheduled for 8:58 a.m.

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