Investing.com - Manufacturing activity in the U.S. picked up the pace and improved in February despite expectations for no change, according to an industry report released on Wednesday.
The Institute for Supply Management (ISM) said its index of manufacturing activity rose to 57.7 last month from January’s reading of 56.0.
Analysts had forecast no change.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
The ISM indicated that the survey suggested that the overall economy had grown for the 93rd consecutive month.
The new orders index rose to 65.1 in February from 60.4 a month earlier.
The employment index decreased to 54.2 last month from the prior 56.1 and compared to forecasts for a drop to 55.9.
The prices paid index fell as expected to 68.0 in February, from the previous reading of 69.0. According to the report, this indicated higher raw materials prices for the 12th consecutive month.
"Comments from the panel largely indicate strong sales and demand, and reflect a positive view of business conditions with a watchful eye on commodities and the potential for inflation,” the ISM said.
After the report, which was published simultaneously with construction spending for January, EUR/USD was trading at 1.0543 from around 1.0529 ahead of the release of the data, GBP/USD was at 1.2304 from 1.2298 earlier, while USD/JPY was at 113.78 from 113.93 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 101.78, compared to 101.84 ahead of the report.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 gained 240 points, or 1.15%, the S&P 500 rose 24 points, or 1.02%, while the Nasdaq Composite traded up 60 points, or 1.02%.
Elsewhere, in the commodities market, gold futures traded at $1,242.55 a troy ounce, compared to $1,240.85 ahead of the data, while crude oil changed hands at $54.25 compared to $54.24 earlier.