US factories enter longest stretch of rapid growth in 30 years
Mon Aug 2,11:53 AM ET
WASHINGTON (AFP) - The American manufacturing sector sped up activity in July, cementing the longest stretch of rapid growth in more than 30 years, a survey showed.
The Institute for Supply Management purchasing managers' index (PMI), based on a survey of supply executives, rose 0.9 point from June to 62.0 in July, in line with private economists' forecasts.
It was the 14th consecutive reading above 50 points, which indicates an expansion in activity.
"The manufacturing sector continues to grow at a rapid rate as the PMI has now been above 60 percent for nine consecutive months," survey chief Norbert Ore said in a statement.
"This is the longest period of growth above 60 percent since the 12-month period of July 1972 through June 1973," he said.
Key findings in the report showed:
-- New orders sped up, with the index rising 4.7 points from June to 64.7 in July.
-- Production accelerated, with the index up 2.9 to 66.1.
-- Employment grew, albeit at a slower rate, with the index easing 2.4 to 57.3.
-- Input prices rose at slower pace, with the index falling 4.0 points to 77.0.
"Today's ISM report provides further verification of the strong state of US manufacturing," said Manufacturers Alliance/MAPI president and chief executive Thomas Duesterberg.
"Overall economic growth in the second half of 2004 will be fueled by strong business equipment investment, purchases of high technology durable goods, and robust exports," he said.
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