The U.S. economy gained momentum this month as companies shook the effects of the pandemic-induced decline, although yields in other parts of the world were slower, according to new research from purchasing managers.
The data released Friday suggests that U.S. companies will look back on demand when they reopen from the lockdowns imposed in the spring and early summer. They also indicate that the economy has so far managed to warm the sharp rise of July in new coronavirus infections and business closures that threaten the recovery of course.
Data firm IHS Markit said its composite purchasing managers’ index, a measure of activity for production and services, rose to 54.7 from 50.3 in July, an 18-month high, with both sectors seeing a large increase. A reading above 50 is a sign of expansion, while a reading below 50 is a sign of contraction.
The index of manufacturing production was up 50.6 from 50.9 in July. The index of activities for activities went to 54.8 out of 50.
“It’s solid,” said Michael Pearce, a senior U.S. economist at Capital Economics. ‘We have given a few reasons to make sure that the recovery momentum is lost or went in a bit the other way around, but they do not seem to materialize. The economy seems to be moving forward. ”
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