Report: Manufacturing At Three-Month High
U.S. manufacturing growth picked up to a three-month high in May, while private business activity in the euro zone grew at just under its fastest pace in three years, surveys showed on Thursday (May 22), according to a report from Reuters.
In Asia, China’s factory sector turned in its best performance this year in May but still contracted for the fifth straight month, while Japanese factory activity cooled slightly in May but at a slower pace than in April.
Financial data firm Markit said its preliminary or “flash” U.S. Manufacturing Purchasing Managers Index rose to 56.2 in May from 55.4 in April, while factory output growth hit its fastest pace since February 2011, rising to 59.6 from 58.2.
“U.S. manufacturing is certainly in an expansion mode, and that’s a good indication going forward, that it will remain on the bullish side of the equation for some time,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
Federal Reserve policymakers last month began laying groundwork for an eventual retreat from easy monetary policy with a discussion of how to best control interest rates as they remove trillions of dollars from the financial system.
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