American manufacturing output reached a 10-month high in June

AMERICAN manufacturing output in June reached 44.8, its highest level since last August 2008, according to the ISM survey published yesterday.

While the headline figure remained below 50, production jumped to 52.5 from 46 in May.

Capital Economics said the index is finally at a level consistent with an actual expansion in GDP, rather than just a more modest contraction.

“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,” the consultancy added.

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.