This month, US manufacturing growth rose to its highest level in over two years according to the Institute for Supply Management (ISM).
The US manufacturing index hit 56 in January, an increase of 1.5 points from last month.
Any reading above 50 indicates an expansion in manufacturing, which accounts for an estimated 12 percent of the US economy.
On an ISM-equivalent basis, the Philly Fed Manufacturing survey’s internals result in a composite index of 57.7, the highest since Nov ’14. pic.twitter.com/oPmrmcTLGg
— Jeoff Hall (@JeoffHall) 19 January 2017
“This is the healthiest that the manufacturing sector has looked in quite some time,” said Stephen Stanley, chief economist at Amherst Pierpont Securities.
The surge could be attributed to US president Donald Trump’s promises to create jobs, particularly in the manufacturing industry, cut taxes and reduce regulation.
The signs of momentum in the US economy coincide with the Federal Reserve’s policy decision announcement expected later today.