The US manufacturing sector expanded further in June, driven by the fastest growth in output and new orders in over four years, an industry report showed today. 

Financial data firm Markit said its final US Manufacturing Purchasing Managers Index rose to 57.3 in June, the highest reading since May 2010.

The preliminary read for the index was 57.5. Any reading above 50 signals expansion in economic activity while under 50 signals contraction. 

The output sub-index rose to 61 from 59.6 while a read on new orders rose to 61.2 from May's final read of 58.8. Both marked the highest level for the indexes since April 2010. 

"Business was booming at US goods producers in June," said Chris Williamson, chief economist at Markit. 

"Factory output, order books and payroll numbers rose at some of the fastest rates we’ve seen since the recession, rounding off the best quarter for four years in terms of manufacturing expansion," he added. 

A read on employment showed continued growth, and was slightly higher from the previous month.

US construction spending up marginally

Government spending was the only driver of overall US construction spending in May, which edged up a scant 0.1% from a year ago, the Commerce Department said.

May private sector spending on construction fell at an annual rate of 0.3% from April, dragged down by a 1.5% drop in home building spending. Nonresidential construction rose 1.1%.

Government construction spending advanced 1%, led by spending on highways.

The May headline number was weaker than expected. Analysts on average estimated overall construction spending would increase 0.4%.

"We anticipate that the blip in residential construction will be temporary; construction spending should continue to recover over the next few months," IHS Global Insight said in a research note.