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American manufacturing is seeing a 'revival'
US manufacturing is showing new signs of progress.
Markit Economics' flash purchasing managers' index for July — a preliminary reading — rose to 52.9, its highest level since November.
Output growth jumped to the best level in eight months, and, more notably, manufacturing payrolls had the biggest gain in a year.
"It remains too early to say if this is the start of a stronger upturn, but this is a welcome and encouraging sign of revival after the second quarter, in which the PMI signaled the sector's worst performance for over six years," Chris Williamson, Markit's chief economist, said in the release.
Economists had forecast that the PMI strengthened to 51.5 from 51.3, according to Bloomberg. The above-50 mark indicates that the manufacturing sector remained in expansionary territory.
US manufacturing entered a downturn last year as the dollar's strength limited the appeal of US exports and as global demand slowed.
The businesses that Markit talked to reported strong sales growth and a sound domestic economy, which encouraged them to create more jobs.
They said rising wages and higher steel prices increased their input costs.
The final report for June put the index at a three-month high and showed a renewed rise in production volumes and hiring.
(Markit Economics)
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