June data highlighted strengthening business conditions across the U.S. manufacturing sector. At 51.4, up from 50.7 in May, the seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers' Index crucial 50.0 no-change threshold and signalled the fastest improvement in operating conditions for three months.

Relatively weak PMI readings during April and May meant that the average for the second quarter of 2016 (51.0) was the lowest seen since Q3 2009.

However, the latest reading pointed to a recovery in growth momentum following the six-and-a-half year low recorded in May. Higher output levels provided a boost to the headline index in June, alongside faster growth of new orders and employment.

Manufacturers indicated a modest rise in production volumes during June, which survey respondents mainly linked to signs of a rebound in customer demand and a corresponding upturn in new work. The latest increase in new business was the strongest since March, although subdued

in comparison to the post-crisis average. New orders from abroad expanded at the fastest pace for almost two years, suggesting an additional boost to growth from greater export sales in June.