Markit Economics released its final manufacturing purchasing managers' index (PMI) for the U.S. on Monday. The U.S. final manufacturing purchasing managers' index (PMI) increased to 53.8 in July from 53.6 in June, in line with the previous estimate.

A reading above 50 indicates expansion in economic activity.

The increase was driven by driven by the rise in overall new business volumes.

The Markit Chief Economist Chris Williamson said that companies reported that the strong U.S. dollar hurt export competiveness.

"The data suggest the manufacturing sector is struggling rather than collapsing against the various headwinds. Relief has also come in the form of lower commodity prices, and low oil prices in particular," he added.