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Revised manufacturing PMI points to strongest improvement in overall business conditions since May 2010

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Revised manufacturing PMI points to strongest improvement in overall business conditions since May 2010

Markit manufacturing PMI for June full of good news.

According to market data firm Markit, final June data pointed to a robust and accelerated improvement in the performance of the U.S. manufacturing sector.

At 57.3 in June (revised downward from the preliminary estimate of 57.5), up from 56.4 in May, the seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers’ Index  indicated the strongest upturn in overall business conditions since May 2010. The latest rise in the headline PMI was driven by the fastest output and new orders growth for just over four years.

"The latest rise in the headline PMI was driven by the fastest output and new orders growth for just over four years."

Manufacturing output growth picked up for the third month running to its strongest since April 2010. Moreover, the average pace of expansion in Q2 was the steepest for any quarter since the survey began in early-2007. Survey respondents generally attributed rising production volumes to improving domestic economic conditions, increased client confidence and a strong pipeline of outstanding work.

In line with the trend for output, total new business volumes increased at a sharp and accelerated pace during June. The latest rise in new work was the most marked since April 2010, despite a weaker contribution from new export order growth. June data signaled that new business from abroad picked up at the slowest pace seen over the current five-month period of expansion.

Payroll numbers at manufacturing firms increased for the twelfth successive month in June. A further solid upturn in employment levels was driven by greater production requirements and the fastest rise in backlogs of work for four months. Moreover, aside from the sharp increase in unfinished work related to heavy snowfall in February, the latest accumulation of outstanding business was the steepest since the survey began in May 2007.

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