- Markit Economics
Markit’s flash manufacturing purchasing manager’s index (PMI) for June rose more than expected to 51.4, a three-month high.
The report showed the manufacturing sector gained momentum after a sluggish first quarter. In May, growth fell to a six-and-a-half-year low.
Production volumes rose, as did new business. New orders from outside the US rose at the fastest pace in nearly two years.
“Any improvement could be largely traced to better export sales, in turn linked to the weakening of the dollar compared to earlier in the year,” said Chris Williamson, chief economist at Markit. “Domestic demand was again worryingly weak, especially from business customers, meaning overall growth of order books remained subdued.”
“It’s encouraging to see the employment trend reviving somewhat, though factories are clearly remaining cost conscious and keeping workforces lean in order to seek productivity improvements.”
Economists had forecast a preliminary reading of 50.9, up from a final May reading of 50.7, according to Bloomberg.