U.S. manufacturing growth accelerated in June to its fastest in over a year even as price pressures eased, according to a report published on Monday.
In fresh evidence that the factory sector is so far weathering the housing sector slump, the Institute for Supply Management's manufacturing index rose to 56.0 in June from 55.0 in May, surpassing forecasts for no change.
The June reading was the survey's highest since April of last year, and the report reinforced the view that U.S. economic growth rebounded following an anemic first quarter.
"We continue to see a rebound in growth in the second half," said Don Kowalchik, debt strategist at A.G. Edwards & Sons in St Louis, Missouri.
Providing some relief on inflation, the survey's prices paid component eased, but there were few signs of a pickup in employment, which edged down to 51.1 from 51.9.
Encouraged on the prospect of strong corporate profits, the stock market added to early gains on the news, which countered a wave of risk aversion that hit the markets last week.