US MANUFACTURING is currently enjoying a growth spurt, with the fastest expansion in four years this month, according to a private survey released yesterday.
Markit’s purchasing managers’ index (PMI) figures for August came in at 58, the highest reading since 2010. Any score about 50 indicates growth, and higher readings suggest particularly rapid expansions.
Some of the survey’s sub-indices are particularly strong. Purchasing activity swelled at the fastest pace since the series began in 2007, adding to the perception that the economy is currently bouncing back at a fast pace.
“With job hiring gathering momentum and input buying expanding at the sharpest pace for at increasingly confident that the recovery is firmly back on track and are gearing up for a sustained rebound in production schedules over the months ahead,” said Markit senior economist Tim Moore.
The US economy grew by four per cent on an annualised basis during the second quarter. This represented a significant jump forward after a weather-driven 2.1 per cent decline during the frozen first quarter of the year.