Markit's flash US manufacturing PMI at four-month high in July

Markit's flash US manufacturing purchasing managers' index came in at a four-month high in July.

The manufacturing index rose to 53.2 from 52.0 the month before amid accelerated growth in output, new orders, employment and stocks of inputs. Manufacturers linked higher volumes of new work to improving demand conditions and signs of reduced risk aversion among clients.

Meanwhile, Markit's flash services PMI remained unchanged from the previous month at 54.2, its fastest rate of expansion since January.

A reading above 50 indicates expansion, while a reading below signals contraction.

Chris Williamson, chief business economist at IHS Markit, said: "The July PMI surveys show an economy gaining growth momentum at the start of the third quarter, enjoying the strongest monthly improvement in business activity since January.

“The overall rate of expansion remains modest rather than impressive. The surveys are historically consistent with annualised GDP growth of approximately 2%, but the signs are that growth could accelerate further in coming months."