US factory data boosts growth picture
US manufacturing activity hovered at a near 4-1/2-year high in September and factory employment surged, supporting views of sturdy economic growth this quarter.
US manufacturing activity hovered at a near 4-1/2-year high in September and factory employment surged, supporting views of sturdy economic growth this quarter.
The economic picture was further brightened by other data on Tuesday showing an acceleration in factory and services industry growth in some areas of the country. Housing, however, continues to plod along, with home price gains decelerating sharply in July.
"The rest of the economy continues to deliver the goods, but the housing market is still not performing as everybody thought it would and that’s going to take some time," said Eugenio Aleman, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.
Financial data firm Markit said its preliminary or "flash" factory purchasing managers index came in at 57.9, unchanged from August when it touched its highest level since April 2010.
The rest of the economy continues to deliver the goods, but the housing market is still not performing as everybody thought it would
Any reading above 50 signals expansion in manufacturing, which accounts for about 12 per cent of US economic activity.
Factory jobs rose for a second straight month, Markit said, with a gauge of labour market conditions touching its highest level since March 2012. A measure of new orders held steady above the 60 level for the third time in the past four months, indicating persistent demand for manufactured goods.
Manufacturing activity in the third quarter was the strongest since Markit started tracking it in mid-2007.
Separately, the Federal Reserve Bank of Richmond said its regional manufacturing index increased this month, with factories citing a rise in new orders and shipments.
Data on Tuesday showed euro-zone business activity in September was the weakest this year, while factory activity in China picked up only slightly.
