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IHS Markit: Operating conditions for US manufacturers improve in July

Manufacturers in the U.S. experienced an upturn in business conditions in July due mainly to expansions in both output and new orders, IHS Markit announced Aug. 1.

The IHS Markit final manufacturing purchasing managers' index for July came in at a seasonally adjusted 53.3, compared to a prior estimate of 53.2 and the June final figure of 52.0.

Production increased for the 14th consecutive month, and the growth of new orders recovered from the nine-month low seen in June. Backlogs of work declined for three months in a row and firms raised their purchasing activity to the greatest extent in five months, IHS Markit said.

Business optimism among manufacturers rose to a six-month high in July, buoyed by favorable market conditions and stronger client demand.

"The second half of the year got off to a good start for U.S. manufacturers, with the health of the sector improving at the fastest rate for four months," Chris Williamson, IHS Markit chief business economist, said.