Investing.com - Manufacturing activity in the U.S. expanded at a faster rate than expected in April, boosting optimism over the health of the economy, industry data showed on Thursday.
In a report, the Institute for Supply Management said its index of purchasing managers rose to 54.9 last month from a reading of 53.7 in March. Analysts had expected the manufacturing PMI to increase to 54.3 in April.
The New Orders Index registered 55.1, equal to the reading in March, indicating growth in new orders for the 11th consecutive month. The Production Index registered 55.7, slightly below the March reading of 55.9.
Employment grew for the 10th consecutive month, registering 54.7, an increase of 3.6 points over March's reading of 51.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Comments from the panel generally remain positive; however, some expressed concern about international economic and political issues potentially impacting demand.
Following the release of the data, the U.S. dollar held on to modest losses against the euro, with EUR/USD rising 0.04% to trade at 1.3872.
Meanwhile, U.S. equity markets were mixed after the open. The Dow shed 0.1%, the S&P 500 dipped 0.1%, while the NASDAQ Composite tacked on 0.2%.