23.05.2024 21:12
Output grows at fastest rate for over two years in May, says S&P Global.
The US Manufacturing Purchasing Managers' Index (PMI) rose in May to its highest level in two months, global data provider S&P Global said Thursday in a report.
The index, which measures the activity level of purchasing managers in the manufacturing sector, added 0.9 point to 50.9 in May, up from 50.0 in April, according to initial figures.
The expectation for the index was to come in at 50.0.
A reading above 50 indicates expansion and below 50 shows contraction.
The US Services Business Activity Index increased 3.5 to 54.8 from 51.3, to reach its highest level in 12 months, also coming in higher than market estimates of 51.2.
"Services activity has now risen for 16 straight months," said the report. "May's improved performance was led by the service sector, where business activity surged higher to register the fastest growth for a year, reversing the slowdown seen over the prior three months."
Chris Williamson, chief business economist at S&P Global Market Intelligence, said business confidence has lifted higher to signal brighter prospects for the year ahead.
"The US economic upturn has accelerated again after two months of slower growth, with the early PMI data signaling the fastest expansion for just over two years in May," he added. -