US Manufacturing PMI Signals First Growth since February

July saw an improvement in operating conditions of the manufacturing sector in the United States, the first since February due to the COVID-19 outbreak.

Although growth was marginal, it stemmed from the first upturns in output and new orders for five months, as client demand picked up.

The seasonally adjusted IHS Markit U.S. Manufacturing Purchasing Managers’ Index (PMI) recorded 50.9 in July, up from 49.8 in June.

The reading also compares to a flash estimate of 51.3, according to data by HIS Markit.

Meanwhile, data showed that the contraction in employment softened, despite further evidence of spare capacity as new sales rose.

In addition, the market is showing greater optimism in the outlook, as evidenced by higher business confidence.