Investing.com - U.S. manufacturing activity in March expanded at the fastest rate in five months, easing concerns over the strength of the economy, preliminary data showed on Tuesday.
In a report, market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index inched up to a seasonally adjusted 55.3 this month from a final reading of 55.1 in February. Analysts had expected the index to dip to 54.7 in March.
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, "While economic growth looks set to disappoint again in the first quarter, with GDP set to rise by a rate perhaps slightly below the 2.2% expansion seen in the fourth quarter of last year, the upturn in order books in particular gives some reassurance that the pace of economic growth is likely to pick up as we move towards the summer."
EUR/USD was trading at 1.0918 from around 1.0933 ahead of the release of the data, GBP/USD was at 1.4876 from 1.4887 earlier, while USD/JPY was at 119.69 from 119.61 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 97.48, compared to 97.34 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 fell 0.25%, the S&P 500 dipped 0.2%, while the Nasdaq Composite lost 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,186.70 a troy ounce, compared to $1,187.90 ahead of the data, while crude oil traded at $47.31 a barrel from around $47.39 earlier.