Excerpt
U.S. manufacturing grew in May at a faster pace than forecast as factories added workers to meet the greatest export demand in two decades as well as a revival in domestic orders.
The Institute for Supply Management’s gauge fell to 59.7 from 60.4 in April, exceeding the median forecast of economists surveyed by Bloomberg News, which called for a decline to 59. Readings greater than 50 point to expansion. Another report showed spending on construction projects rose in April by the most since 2000.
Stocks worldwide pared losses after the reports helped dispel concern industrial slowdowns from China to Europe meant the global rebound was stalling. Orders at companies including Deere & Co. and 3M Co. are climbing as customers update equipment and rebuild inventories.
“It’s really difficult to find pockets of weakness in the economy and some sectors, like manufacturing, are growing robustly,” said Zach Pandl, an economist at Nomura Securities International Inc. in New York, who projected the index would drop to 59.8. “The recovery is quite durable at this point.”
Jobs have a long way to go, but this news is the type that will allow more hiring.
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