Manufacturing Growth Soars to 4-Year High

The Markit Flash U.S. Manufacturing Purchasing Managers' Index this month recorded its strongest reading in over four years, according to a  Markit report (link opens as PDF) released today.

The "flash" estimate is typically based on approximately 85% to 90% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data. An above-50 reading indicates general growth, while below 50 signals contraction.

This month's report clocked in at 57.5, a 1.1-point improvement over May's final reading and exactly one point above analyst expectations. 

June's jump came from all the right components. The all-important new orders soared 2.9 points to reach 61.7, while output added 1.4 points to hit an even 61. Both output and new orders also hit four-year highs. In a longer-term sign of stable improvement, output's average second-quarter 2014 growth is the strongest ever seen by Markit, which began collecting index data in early 2007.

"U.S. industry is booming again, with the flash manufacturing PMI hitting its highest for just over four years in June," said Markit Chief Economist Chris Williamson in a statement today. "The strong reading also rounds off the best quarter for factories for four years, adding to indications that the US economy rebounded strongly in the second quarter from the weather-related weakness seen at the start of the year." Williamson was quoted as saying the Markit data suggest GDP "should be set to rise by at least 3% after the 1% decline in the first quarter."

The Markit report coincides with today's strong national economy report from the Chicago Federal Reserve Bank. Investors will be watching Wednesday's GDP growth report from the federal government, the third update on Q1 performance, to see whether these latest signs of strength are corroborated by the all-encompassing gross domestic product.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3004592, ~/Articles/ArticleHandler.aspx, 8/31/2015 3:15:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Justin Loiseau

Energy and Macroeconomic Specialist keeping investors up to date with macro news, utilities, and good companies doing good things.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
MRKT $28.48 Up +0.19 +0.67%