The U.S. manufacturing sector saw a slight rebound in July, following multi-year weakness reported in June, according to the according to the latest flash Purchasing Managers Index data.
Friday, private research firm Markit said its June PMI estimate rose to a level of 53.8, compared to June’s final reading of 53.6. According to consensus reports, economists were expecting to see a reading at 53.7.
A reading above 50.0 signals an improvement in business conditions, while readings below 50.0 signal deterioration.
“Measured overall, July’s survey pointed to a strong rise in incoming new business, with the rate of expansion picking up to its fastest for three months. A number of survey respondents noted that subdued export demand, as well as the strong dollar, had encouraged them to focus sales efforts on faster growing domestic markets,” the report said.
Economists along with the Federal Reserve have noted that a stronger U.S. dollar has been one of the biggest weights on the manufacturing sector as it has reduced the country’s exports.
““Although export orders showed the first rise since February, the rise was only very modest, blamed by companies on the appreciation of the dollar and sluggish global demand,” said Chris Williamson, chief economist at Markit.