A global indicator based on national surveys of manufacturers shows the sector grew at a faster pace in June, a report showed on Friday. The indicator, produced by J.P. Morgan with research and supply management organisations, rose to 52.4 in June from 51.1 the previous month, staying above the 50 line which separates growth from contraction.
The index combines data from around 20 countries including the United States, Japan, Germany, France and Britain.
"The global PMI sent a strong signal that growth in global manufacturing output is poised for a pickup. New orders, output and the new orders/inventory ratio each gained," said David Hensley, director of global economic co-ordination at J.P. Morgan.
The new orders index rose to 54.4 from 51.6 in May - reaching its highest level so far in 2005. The output index rose to 53.8 from 53.0.
The employment index rose to 50.0 from 49.6 the previous month. A net increase in staffing levels was recorded in Japan in June, but this was offset by a decline in employment in the eurozone.
National surveys showed contraction in the manufacturing sectors of the eurozone and Britain slowed last month as exports strengthened.
By contrast, strong domestic demand in Japan helped its manufacturers put in their best performance in ten months.
The US index, produced by the Institute for Supply Management, rose to 53.8 from 51.4 in May, well above economists' forecasts for a slight uptick to 51.5.