US factory sector enjoys biggest output rise in 23 months

<p>The US factory sector has enjoyed its biggest rise in output since March 2011.</p>

The US factory sector enjoyed its sharpest output rise in 23 months in February, according to flash purchasing managers index (PMI) data.

Markit reports that the world's largest economy's manufacturing industry continued to grow this month, with its PMI reading coming in at 55.2, which is down from the 55.8 recorded the previous month but still maintains the industry is enjoying solid growth.

Manufacturers reported the sharpest rise in output since March 2011, while employment in the industry continued to climb, albeit at its weakest pace since November 2012.

However, there was a reduction in export orders, which declined for the first time in four months, but the slide was only modest.

Chief economist at Markit Chris Williamson commented that the data will help to allay fears the US is bound for a double-dip recession.

At 14:50 GMT, the Dow Jones advanced by 0.4 per cent to 13945.8 points, while the technology-heavy Nasdaq made 0.6 per cent gains to 3150.1 points.

Learn about the markets and CFD trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.