The July data signaled a further recovery of business conditions across the US;s manufacturing sector, led by sustained expansion of incoming new orders and the very growth in production for eight months. Creation of new jobs was strengthened in July, the latest increase in jobs was the fastest in the last 12 months. At the same time, input price inflation rose at the fastest pace since November 2014, but selling prices rose only slightly.

Markit data showed that seasonally adjusted preliminary manufacturing purchasing managers index rose to 52.9 in July, compared with 51.3 in June, and pointed to the strong improvement in the general business environment.

In addition, the index continues to recover from its post-crisis low, recorded in May, the latest reading been the strongest since October 2015. The acceleration of growth in output, new orders and employment had a key positive effect in July.