Manufacturing grew in April at the strongest rate in 10 months in the United States, easing concerns that the economy had lost momentum at the start of the second quarter.
The Institute for Supply Management said on Tuesday that its index of national factory activity rose to 54.8 points from 53.4 in March. The figure beat expectations for a decline to 53.0 in a Reuters poll.
A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 signifies expansion.
“The view on the economy has swung from optimism to pessimism of late, and this could bring us back to the middle,” said Nick Bennenbroek, head of FX Strategy for North America at Wells Fargo. “I.S.M. suggests there’s no real reason to get too concerned about the path of the U.S. economy at this point.”
The organization's gauge of employment also rose to its highest since June, to 57.3 points from 56.1. The forward-looking new orders component racked up its best reading in a year at 58.2 points, up from 54.5.
The strong labor figure comes ahead of the larger government nonfarm payrolls report due on Friday, which is forecast to show the economy added 170,000 jobs last month, including 22,000 manufacturing positions.
The report bucked the trend of recent data that suggested the economy lost some steam as the second quarter got under way, highlighting the bumpy nature of the recovery.
Manufacturing grew in April at the strongest rate in 10 months in the United States, easing concerns that the economy had lost momentum at the start of the second quarter.
The Institute for Supply Management said on Tuesday that its index of national factory activity rose to 54.8 points from 53.4 in March. The figure beat expectations for a decline to 53.0 in a Reuters poll.
A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 signifies expansion.
“The view on the economy has swung from optimism to pessimism of late, and this could bring us back to the middle,” said Nick Bennenbroek, head of FX Strategy for North America at Wells Fargo. “I.S.M. suggests there’s no real reason to get too concerned about the path of the U.S. economy at this point.”
The organization's gauge of employment also rose to its highest since June, to 57.3 points from 56.1. The forward-looking new orders component racked up its best reading in a year at 58.2 points, up from 54.5.
The strong labor figure comes ahead of the larger government nonfarm payrolls report due on Friday, which is forecast to show the economy added 170,000 jobs last month, including 22,000 manufacturing positions.
The report bucked the trend of recent data that suggested the economy lost some steam as the second quarter got under way, highlighting the bumpy nature of the recovery.
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