In August, the US manufacturing activity reached a five month high as hiring and new orders increased at its fastest pace in January, as shown in an industry report.
Markit, a financial data firm, said that the US Manufacturing Purchasing Managers Index increased by 53.9%. This was its best rise since March and also below the forecasted 54.0%. In July, the index stood 53.7% which is above 50 indicates expansion.
However, the overall output declined to 53.4% from a previous 54.8%. This was the slowest economic growth in three months given the pace of the US expansion. Markit Chief Economist Chris Williamson referred to the condition as "disappointingly sluggish".
According to Williamson, "Hopefully the faster growth of new orders seen during August will translate into increasingly strong production gains in coming months, and also boost hiring." He also said that the manufacturing market "is still barely contributing to nonfarm payroll growth." This was even new orders increased to 56.5% from a previous 55.5% in July.
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