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US factory activity expands further in May: Markit

A worker uses a tool on a Daimler AG Mercedes Benz M-Class vehicle at the company's international assembly plant in Vance, Alabama, May 28, 2014.
Luke Sharrett | Bloomberg | Getty Images

The U.S. manufacturing sector expanded in May at a faster clip than previously seen, an industry report showed on Monday.

Financial data firm Markit said its final U.S. Manufacturing Purchasing Mangers Index rose to 56.4 in May from 55.4 in April, and following a preliminary reading of 56.2.

Read MoreUS manufacturing sector grows, pace slows: ISM

Readings above 50 indicate expansion in the sector.

ISM manufacturing index 53.2

"The survey puts the sector on course to provide a substantial boost to gross domestic product in the second quarter, and therefore adds to signs that the economy has enjoyed a strong revival after shrinking due to the adverse weather at the start of the year," said Chris Williamson, chief economist at Markit.

"But this is not simply a weather-related rebound," he said, adding that companies are "feeling more confident, restocking, expanding and investing."

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The output subindex was the highest since February 2011, coming in at 59.6, unchanged from the preliminary and above April's 58.2. The employment subindex was unchanged from April at 53.7 after showing a dip to 53.5 in the preliminary report.

By Reuters

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