Final data released by IHS Markit showed that activity in the U.S. manufacturing sector in July improved further in July.

According to the report, the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers' Index (PMI) came in at 53.3 last month, compared to a preliminary reading of 53.2 and a final reading of 52 in June. That was the highest reading in four months. Economists had expected the reading to stay at 53.2.

The July improvement in business conditions was largely driven by marked and accelerated expansions in both output and new orders, while inflationary pressures remained muted, despite a pickup in the rate of input cost inflation.

Chief Business Economist at HIS Markit Chris Williamson noted: "The second half of the year got off to a good start for US manufacturers, with the health of the sector improving at the fastest rate for four months. Output, new orders, employment and buying activity all grew at increased rates. The only real blot on the copybook was a decline in exports for the first time since last September."