U.S. manufacturing output rose in May and factory activity in New York state accelerated sharply this month, buoying hopes of a strong rebound in economic growth this quarter.
Factory production increased 0.6 percent last month as production increased across the board, the Federal Reserve said on Monday. Output had slipped 0.1 percent in April and economists had expected it to rise 0.5 percent last month.
“It reinforces the current narrative of a strengthening in U.S. domestic fundamentals, as the economy continues to build on the post-winter slowdown momentum,” said Millan Mulraine, deputy chief economist at TD Securities in New York.
In a separate report, the New York Federal Reserve said its “Empire State” general business conditions index rose to 19.28 this month, the highest reading since June 2010, from 19.01 in May. Readings above zero indicate growth.
New orders hit their highest level in four years. Although factory job growth slowed, employers increased hours for their workers.
The reports were the latest evidence the economy was regaining steam after a dismal first quarter, when growth contracted at a 1.0 percent annual pace.
Data ranging from employment to services industries have pointed to a strong come back in the economy. Growth rate estimates for the April-June quarter range as high as 4 percent.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.