Investing.com - U.S. manufacturing activity expanded at the fastest pace since April 2010 in August, fuelling 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 increased to a seasonally adjusted 58.0 this month from a final reading of 55.8 in July. Analysts had expected the index to ease down to 55.7 in August.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
All five components of the Manufacturing PMI had a more positive influence on the headline index than in July, led by a robust and accelerated increase in employment."
Commenting on the report, Tim Moore, Senior Economist at Markit said that “Overall, with job hiring gathering momentum and input buying expanding at the sharpest pace for at least seven years, it seems US manufacturers are increasingly confident that the recovery is firmly back on track and are gearing up for a sustained rebound in production schedules over the months ahead."
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD easing up 0.09% to trade at 1.3271, compared to 1.3269 ahead of the data.
Meanwhile, U.S. stock markets were higher after the open. The Dow picked up 0.2%, the S&P 500 tacked on 0.15%, while the NASDAQ Composite rose 0.1%.