Tempe, AZ, United States (4E) – The manufacturing sector in the U.S. registered faster-than-anticipated activity in July, according to data by the Institute for Supply Management (ISM) released on Friday, with the index that measures activity in the sector rising to its highest level in three years.
The ISM Purchasing Managers Index (PMI) climbed to 57.1 in July from 55.3 in the previous month. Economists had forecast the index to rise to a 56.0 reading. A level above 50 indicates expansion in the manufacturing sector.
The faster-than-expected gain was partially attributed to improvement in job creation in the manufacturing sector, as the employment index rose to 58.2 in July from 52.8 in the prior month.
The new orders index jumped to 63.4 in July from June’s 58.9, while the gauge for production inched up to 61.2 from 60.0.
Meanwhile, the index for inventories dropped to contraction territory at 48.5 in July from the previous month’s 53.0 reading. The measure for exports also declined to 53.0 from 54.5.