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“The U.S. manufacturing sector moved into expansion for the first time since September 2022. Demand was positive, output strengthened and inputs remained accommodative,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee. Meanwhile, the report also noted an improvement in the labor market, even as it remained in contraction territory. The Employment Index rose to 47.4%, up from 45.9%.
Stephen Brown, Deputy Chief North America Economist at Capital Economics dismissed the higher inflation pressures.
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