American manufacturing output reached a 10-month high in June

<div>AMERICAN manufacturing output in June reached 44.8, its highest level since last August 2008, according to the ISM survey published yesterday.<br /><br />While the headline figure remained below 50, production jumped to 52.5 from 46 in May.<br /><br />Capital Economics said the index is finally at a level consistent with an actual expansion in GDP, rather than just a more modest contraction.<br /><br />&ldquo;The key forward-looking new orders index actually fell back slightly in June to 49.2, from 51.1, suggesting that some of the initial burst of pent-up demand may already be fading,&rdquo; the consultancy added.<br /><br />Employment rose to 40.7 from 34.3, while prices jumped to 50 from 43.5. But the separate ADP employer services report showed that private firms cut a net 473,000 jobs in June.</div>