US manufacturers report strongest growth since 2010

Manufacturers in the US reported the fastest growth since 2010, according to Markit’s Purchasing Managers’ Index (PMI) for the sector.

The index reached 57.5, with output, new orders, employment and work backlogs all gaining momentum since May.

Cost inflation hit its highest level since January and factory gate prices increased for the first time this year.

Chief economist Chris Williamson said: “The survey data suggest that GDP should be set to rise by at least 3% after the 1% decline in the first quarter.”

“If there’s a weak spot it’s the near-stagnation of exports, which raises the possibility that trade will have acted as a drag on the economy in the second quarter.”

New export orders are still on the rise, but at a slower rate than other parts of the index.