Investing.com - Manufacturing activity in the U.S. rose more than expected to a 16-month high in June, bolstering optimism over the outlook for second quarter growth, according to an industry report released on Friday.
The Institute for Supply Management said its index of manufacturing activity rose to 53.2 last month from May’s 51.3.
That was its highest level since February 2015.
Analysts had expected the factory index to tick up to 51.4.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
The new orders index rose to 57.0 from 55.7 a month earlier.
The employment index unexpectedly improved to 50.4, compared to a forecast for a decrease to 49.0 from the prior month’s reading of 49.2.
The prices paid index fell to 60.5 from 63.5. Analysts had expected no change.
Following the report, EUR/USD was trading at 1.1152 from around 1.1148 ahead of the release of the data, GBP/USD was at 1.3332 from 1.3320 earlier, while USD/JPY was at 102.59 from 102.53 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.56, compared to 95.58 ahead of the report.
Meanwhile, U.S. stock markets were higher after the open. The Dow 30 rose 0.28%, the S&P 500 gained 0.37%, while the Nasdaq Composite traded up 0.59%.
Elsewhere, in the commodities market, gold futures traded at $1,341.45 a troy ounce, compared to $1,342.95 ahead of the data, while crude oil traded at $48.49 a barrel from $48.40 earlier.