Trump bump: US manufacturing activity expands at fastest rate since 2014
The US manufacturing sector started the new year on a high as Donald Trump assumes the Presidency, according to a survey of business activity.
Manufacturing activity in the world’s largest economy expanded at the fastest rate since September 2014, according to flash estimates from data provider IHS Markit.
The manufacturing purchasing managers’ index (PMI) rose to 55.1 in January, up from 54.3 in December, to post the fastest increase in activity since March 2015.
The rise in activity continues a steady trend since September. A measure over 50 indicates an expansion in the manufacturing economy.
Read more: US manufacturing PMI sees pre-Trump bounce
New orders boosted the sector well beyond analyst expectations, as they rose at the fastest pace in 28 months. Output enjoyed a similar boost, expanding the most in 22 months.
Chris Williamson, chief business economist at IHS Markit, said: “US manufacturers are seeing a bumper start to 2017, with production surging higher in January on the back of rising inflows of new orders.
“New work is growing at the fastest rate for over two years, thanks mainly to rising demand from customers in the home market. Export growth remains subdued, stymied by the strong dollar.
The rise in activity comes as Donald Trump begins his tenure as US President. Trump’s campaign promised to bring back jobs in US manufacturing in areas with low labour force participation.