U.S. Markit manufacturing PMI rises more than expected in June
Investing.com
Published Jun 23, 2016 09:46AM ET
U.S. manufacturing activity hits 3-month high
Investing.com – Activity in the US manufacturing sector registered a larger-than-expected expansion in June, according to preliminary data released on Monday.
In a report, market research group Markit said that its flash manufacturing purchasing managers’ index (PMI) rose to 51.4 in June from the prior month’s final reading of 50.7.
Analysts had expected an increase to 50.8 this month.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
The manufacturing PMI hit this three-month high amid a renewed upturn in output levels.
The report also showed an acceleration in new business growth that was helped by the fastest rise in export sales since September 2014.
Of note, input cost inflation picked up to its strongest level in over a year-and-a-half.
Although Markit chief economist Chris Williamson considered the report to be “welcome news”, he still noted that the manufacturing sector looked to have been a drag on the economy in the second quarter.
Williamson attributed the improvement to better export sales and noted that domestic demand was “again worryingly weak”.
“Despite the improvement in the current month, the three months to June has seen the worst quarter for manufacturing in terms of both production and employment growth since 2009,” Williamson concluded.
In an immediate reaction, EUR/USD was trading at 1.1376 from around 1.1387 ahead of the release of the data, GBP/USD was at 1.4835 from 1.4870 earlier, while USD/JPY was at 105.67, compared to the prior 105.90.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.36, compared to 93.30 ahead of the report.
Meanwhile, U.S. stocks were trading higher after the open as the Dow 30 gained 140 points or 0.79%, the S&P 500 traded up 15 points or 0.71% , and the tech-heavy NASDAQ Composite rose 32 points or 0.66%.
Elsewhere, in the commodities market, gold futures traded at $1,265.65 a troy ounce, compared to $1,264.45 ahead of the data, while crude oil traded at $49.77 a barrel from $49.73 earlier.
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Written By: Investing.com
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