The latest report by IHS Markit revealed on Monday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) came in at 63.4 in July, up from 62.1 in June and marginally higher than the earlier released “flash” reading of 63.1. The July reading pointed to a noticeable improvement in operating conditions, which was strongest in the 14-year series history.

Economists had forecast the index to stay unrevised at 63.1.

According to the report, the July gain in headline figure was supported by stronger expansions in output and new orders, with the latter growing at the second-quickest pace since data collection began in May 2007. At the same time, unprecedented supplier shortages and delays continued to exert upward pressure on input costs and stymie firms' ability to process incoming new work. As a result, cost burdens rose at a record-breaking rate and the accumulation of backlogs accelerated. Elsewhere, employment rose at the sharpest pace for three months, but some firms continued to note difficulties filling vacancies.