A reading above 50 for the purchasing managers’ measure indicates expansion. Economists in a Bloomberg survey projected the gauge to hold at its preliminary reading of 56.2, according to the median survey. Estimates ranged from 55.2 to 56.5.
“The survey puts the sector on course to provide a substantial boost to gross domestic product in the second quarter, and therefore adds to signs that the economy Has enjoyed a strong revival after shrinking due to the adverse weather at the start of the year,” Chris Williamson, chief economist at Markit, said in a statement. “Companies are reporting that their customers are feeling more confident, restocking, expanding and investing.”
The group’s gauge of production rose to 59.6 in May, the highest since February 2011, from 58.2 a month earlier. Orders and factory employment were little changed from April.
The Markit measure is based on replies from about 85 percent to 90 percent of companies in a poll of more than 600 American manufacturers.
To contact the reporter on this story: Shobhana Chandra in Washington firstname.lastname@example.org