US manufacturing sector unexpectedly expands in May - ISM

Growth in the US economy's manufacturing sector unexpectedly improved in May, according to the US Institute for Supply Management.

The ISM's headline manufacturing index rose to 54.9 from 54.8 the month before, beating expectations for a reading of 54.5.

The employment index came in at 53.5, up from 52.0 in April, while the new orders index printed at 59.5 compared to 57.5.

The production index registered at 57.1 from 58.6in April and the prices paid index fell to 60.5 in May from 68.5.

Pantheon Macroeconomics said: "The core message here is that the industrial recovery continues at a very modest pace, following the end of the collapse in capex in the oil sector, and everything dependent on it."

Capital Economics said: "The ISM manufacturing index was little changed at a fairly healthy level in May and suggests that economic growth is still on track to rebound to 3% annualised in the second quarter."