The US manufacturing sector has recorded its best monthly result in over three years in the Institute for Supply Management’s survey.
AAP reports that the result of 59 for August was up from July’s 57.1, and represented the highest score since March 2011.
Any result over 50 indicates expansion.
The production sub-index achieved its best result in four years and new orders its highest in 10.
Reuters notes that the result was in line with a strong result in another survey of the sector, the Markit US Performance of Manufacturing Index, which recorded a result of 57.9.
There are concerns, however, about a lack of investment in the US manufacturing industry in new equipment.
The Wall Street Journal reports that companies are weighting their spending towards share buybacks and acquisitions, and neglecting capital expensiture.
According to a recent Morgan Stanley report, the average age of the country’s industrial equipment is its highest since 1938.