American companies grew faster in April, especially manufacturers, in a reflection of a steadily expanding U.S. economy.
The flash IHS Markit U.S. manufacturing PMI climbed to 56.5 this month from 55.5 and touched a three-and-a-half-year high. Readings over 50 indicate expansion.
A similar survey of service-oriented businesses that employ most Americans also rose. It edged up to 54.4 from 54. A flash reading is typically based on approximately 85%–90% of responses each month.
Businesses boosted production in April to match an increase in new orders. However, these companies still have to contend with rising inflation and an increase in the cost of raw materials.