U.S. manufacturing sector continues to grow in May: report

HOUSTON, May 23 (Xinhua) -- The U.S. Purchasing Managers' Index (PMI) surveys for May pointed to an encouragingly solid pace of economic growth, according to data released by the IHS Markit on Wednesday.

The seasonally adjusted IHS Markit Flash U.S. Manufacturing PMI registered 56.6 in May, up fractionally from 56.5 in April, to signal the strongest improvement in business conditions since September 2014.

May data revealed relatively strong rises in both manufacturing production and incoming new business, which survey respondents attributed to improving economic conditions and a continued recovery in domestic sales.

The seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index increased from 54.9 in April to 55.7 in May, the highest for three months and well above the crucial 50.0 no-change value.

A faster rise in service sector output was the key factor behind the acceleration in overall business activity.

Service sector business activity growth continued to accelerate in May. At 55.7, up from 54.6 in April, the seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index pointed to the fastest rate of expansion for three months.

May data signaled a slight slowdown in new business growth from the three-year peak recorded in April.

Commenting on the flash PMI data, Chris Williamson, chief business economist at IHS Markit, said: "Input costs measured across both manufacturing and services are rising at the fastest rate for nearly five years, with the goods-producing sector seeing the steepest cost increases for seven years in recent months," adding "business optimism meanwhile remains at a three year high, with companies commonly expecting rising demand to help drive business growth, setting the scene for further strong survey results in coming months."

London-based IHS Markit is a global company in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. Enditem