ECONOMY ON THE MEND?
Manufacturing in the United States expanded at its fastest rate in more than four years according to a preliminary reading from financial data firm Markit, which crowed that “U.S. industry is booming again.”
“The US economy rebounded strongly in the second quarter from the weather-related weakness seen at the start of the year,” Markit noted in reporting an increase in its “flash” purchasing managers’ index.
That reading hit 57.5 in June, Markit claims, up from 56.4 in May.
“Data suggests that GDP should be set to rise by at least 3 percent after the 1 percent decline in the first quarter,” the analysis continued.
Well … let’s not get ahead of ourselves. But the reading is a full point better than the 56.5 economists predicted – and the highest reading posted by the index since May 2010.
It’s not all rainbows and unicorns, though …
“If there’s a weak spot it’s the near-stagnation of exports, which raises the possibility that trade will have acted as a drag on the economy in the second quarter,” the report concludes.
Then there’s the broader question of whether the uptick is a short-term reaction to first quarter sluggishness or the beginning of a sustained upward trajectory.
Obviously we hope it’s the latter … although we wouldn’t be surprised if this “flash” reading doesn’t sustain itself.