Investing.com - Manufacturing activity in the Chicago-area expanded at a faster rate than expected in April, easing concern over the U.S. economic outlook, industry data showed on Wednesday.
In a report, market research group Kingsbury International said its Chicago purchasing managers’ index rose to a seasonally adjusted 63.0 this month from a reading of 55.9 in March. Analysts had expected the index to improve to 56.7 in April.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
New Orders and Production increased sharply, while improvements in Order Backlogs and Employment also added to the month’s strong performance.
Commenting on the MNI Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, “Looking at both March and April in aggregate leaves the pace of growth steady at around the 60 mark, which chimes with continued growth in the US economy.”
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD rising 0.35% to trade at 1.3860.
Meanwhile, U.S. equity markets were mixed after the open. The Dow rose 0.1%, the S&P 500 declined 0.1%, while the NASDAQ Composite shed 0.3%.