Investing.com - U.S. manufacturing activity expanded at a slower rate than expected in July, dampening optimism over the strength of the economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index dipped to a seasonally adjusted 56.3 this month from a final reading of 57.3 in June. Analysts had expected the index to ease up to 57.5 in July.
Nonetheless, the output index reading in July (60.4) was well above the 50.0 no-change mark and still pointed to an historically strong rate of growth.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “The data suggest the sector is growing at an annualized rate of roughly 8% as we moved into the second half of the year.”
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD easing up 0.02% to trade at 1.3466, compared to 1.3464 ahead of the data.
Meanwhile, U.S. stock markets were higher after the open. The Dow picked up 0.15%, the S&P 500 tacked on 0.15%, while the NASDAQ Composite rose 0.1%.