Investing.com - U.S. manufacturing activity expanded at a faster rate than expected in May, easing concerns over the strength of the economy, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index rose to a seasonally adjusted 56.2 this month from a final reading of 55.4 in April. Analysts had expected the index to ease up to 55.5 in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that “This provides further confirmation that industry will aid a rebound in U.S. GDP in the second quarter, and other indicators from the survey suggest that the sector has plenty of momentum heading into the summer and beyond.”
Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD shedding 0.25% to trade at 1.3652.
Meanwhile, U.S. stock markets were mixed after the open. The Dow declined 0.1%, the S&P 500 added 0.1%, while the Nasdaq 100 tacked on 0.1%.