Investing.com - Manufacturing activity in the U.S. rose more than expected in June, according to an industry report released on Monday, bolstering optimism over the U.S. economy,.
The Institute for Supply Management (ISM) said its index of manufacturing activity advanced to 57.8 last month from May’s reading of 54.9.
Analysts had forecast an increase to just 55.2.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
The new orders index rose to 63.5 in June from 59.5 a month earlier.
The employment index unexpectedly increased to 57.2 last month from the prior 53.5 and compared to forecasts for a dip to 53.3.
The prices paid index fell to 55.0 in June, from the previous reading of 60.5. Economists had forecast a decrease to 58.8.
“Comments from the panel generally reflect stable to growing business conditions, with new orders, employment and inventories of raw materials all growing in May compared to April,” the ISM noted.
“The slowing of pricing pressure, especially in basic commodities, should have a positive impact on margins and buying policies as this moderation moves up the value chain,” the report concluded.
After the report, which was published simultaneously with construction spending for May, EUR/USD was trading at 1.1365 from around 1.1368 ahead of the release of the data, GBP/USD was at 1.2941 from 1.2955 earlier, while USD/JPY was at 113.20 from 113.05 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.89, compared to 95.84 ahead of the report.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 gained 145 points, or 0.68%, the S&P 500 rose 14 points, or 0.56%, while the Nasdaq Composite traded up 22 points, or 0.35%.
Elsewhere, in the commodities market, gold futures traded at $1,227.66 a troy ounce, compared to $1,228.81 ahead of the data, while crude oil changed hands at $46.59 compared to $46.55 earlier.