The US manufacturing sector continued to grow in April, though at a slower rate than in the previous month, according to a private survey.
Reuters reports that Markit’s Flash PMI for April was 55.4. The reading for the previous month of March was 55.5. This was lower than expected by economists.
All values above 50 represent expansion in the sector, while values below 50 indicate the sector is contracting.
Commenting on the result, Chris Williamson chief economist at Markit said, “Manufacturers reported a solid start to the second quarter, with output growing at its fastest pace for over three years,”
“With manufacturing acting as a good bellwether of the rest of the economy, the survey bodes well for further robust economic growth in the second quarter.
“Companies are taking on staff to build operating capacity in the face of an increasingly favourable outlook. The April survey recorded ongoing job creation in the region of 10-15k per month in the goods producing sector.”
The survey found that there were stronger increases in output and new orders. In addition, staffing levels in the sector rose for the tenth month in a row and input cost inflation was at its slowest since May 2013.