American factory activity accelerated for the second straight month in June, signaling momentum in the U.S. manufacturing sector. The Institute for Supply Management on Monday said its manufacturing index rose to 60.2 in June from 58.7 in May. Numbers above 50 indicate activity is expanding across the manufacturing sector, while numbers below 50 signal contraction. Economists surveyed by The Wall Street Journal had expected a 58.1 reading for June.
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The index in February hit 60.8, its highest level since May 2004, before easing in March and April. It picked up in May and again in June. Broader economic growth appeared to pick up in the just-completed second quarter after a modest slowdown in the early months of 2018. The unemployment rate declined below 4% this spring and forecasters expect solid growth this year, supported by recent tax cuts and strong consumer sentiment.
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(END) Dow Jones Newswires 07-02-18 1035ET Copyright (c) 2018 Dow Jones & Company, Inc.