US manufacturing rebounded in July, as it follows the pattern repeated over the past four years.
Chris Williamson, Chief Economist, Markit: - The U.S. manufacturing sector picked up momentum again in July, with output, order books and employment all growing. The goods-producing sector acts as a bellwether of the wider economy, and the upturn in July therefore bodes well for the pace of GDP growth to have picked up again in the third quarter after a likely easing in the second quarter.This stabilization in manufacturing will add to the ammunition for the more hawkish members of the FOMC, who will argue for a reduction in securities purchases starting in September.
The pace of manufacturing growth nevertheless remains well below that seen at the start of the year, in part reflecting weaker demand from many export markets, notably China and other emerging economies. Employment growth is disappointingly weak as a result, as firm focus on cost-cutting to boost competitiveness.
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