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Markit Factory Index in U.S. Climbs to More Than Four-Year High

The Markit Economics preliminary August index of U.S. manufacturing jumped to 58, the highest since April 2010, from 55.8 the month before as production, orders and employment picked up, the London-based group said today.

Readings exceeding 50 in the purchasing managers’ gauge indicate expansion. The median forecast in a Bloomberg survey of economists was 55.7, with estimates ranging from 54 to 57.

The group’s measure of employment increased to 54.6, the highest since March 2013, from 51.2 in July. The gauges of orders and production were the second-highest since early 2010, the report showed.

“August’s survey delivers further evidence that robust manufacturing growth momentum has been sustained through the third quarter,” Tim Moore, senior economist at Markit, said in a statement. “It seems U.S. manufacturers are increasingly confident that the recovery is firmly back on track and are gearing up for a sustained rebound in production schedules over the months ahead.”

The Markit measure is based on a poll of more than 600 American manufacturers, with a response rate of 85 percent to 90 percent.

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