Two US manufacturing PMI (purchasing managers' index data) surveys published Thursday show strong growth in April.
On Wednesday a government report showed that US growth shuddered to a halt in the first quarter due to both severe weather and a fall in exports.
Activity in the manufacturing sector expanded in
April for the 11th consecutive month, and the overall economy grew for the 59th
consecutive month, say the nation's supply executives in the latest
Manufacturing ISM Report On Business.
Markit, the London-based financial data firm, said US manufacturers indicated a strong start to the second quarter of 2014, with output and new business volumes both rising sharply during April. Job creation continued, albeit at the slowest pace for three months, while input cost inflation moderated to its weakest since May 2013. Factory gate price inflation was the least marked for nine months.
The headline figure derived from the survey is the Markit US Manufacturing Purchasing Managers’ Index (PMI), which is designed to signal changes in prevailing business conditions in the US manufacturing sector. PMI readings above 50.0 signal an improvement in business conditions, while readings below 50.0 signal deterioration.
At 55.4 in April, the final Markit US Manufacturing PMI was little-changed from 55.5 in March and remained well above the 50.0 no-change value. The latest reading signalled an improvement in overall business conditions that matched the average for the first quarter of 2014 (55.4).
Faster expansions of production levels and incoming new work were the main positive influences on the headline PMI in April. Latest data signalled that output increased at the steepest pace since March 2011. Survey respondents commented that improving domestic economic conditions had been a key factor supporting production levels in April.
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