Manufacturing activity across the U.S. reached a four-month high in July as output increased and new orders rebounded, according to a report Tuesday.
The IHS Markit U.S. manufacturing purchasing managers' index rose to 53.3 in July from 52 in June. Readings above 50 represent expansion while prints below 50 show contraction.
The report also noted input price inflation linked to higher component costs and supplier shortages.
Chris Williamson, IHS Markit chief business economist, said the majority of indicators, including employment and buying activity, ticked up in July, though some only slightly.
"The only real blot on the copybook was a decrease in exports for the first time since last September," he said. "Clearly, the manufacturing sector remains stuck in a low gear, though is at least gaining momentum and will hopefully shift up a gear as we move through the second half of the year if demand continues to improve."
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(END) Dow Jones Newswires
August 01, 2017 11:03 ET (15:03 GMT)