US economy boosted by manufacturing activity rise

US manufacturing activity rose to its highest level since 2011 last month and construction spending rebounded strongly in July, in further signs of vigour in the economy.

The Institute for Supply Management said yesterday its index of national factory activity rose to 59.0 last month, the highest reading since March 2011, from 57.1 in July.

A reading above 50 indicates expansion in the manufacturing sector. Economists had expected a pullback to 56.8. August’s reading was boosted by a surge in the new orders gauge, which touched its highest level since 2004.