U.S. manufacturing activity rose at a steady clip in June and automobile sales raced to their highest level in almost eight years, pointing to momentum in the economy after a turbulent start to the year.

    The data Tuesday painted an upbeat picture for the second quarter and underscored the strength in the economy heading into the last half of the year.

    “We come away from these reports with a higher level of conviction that the U.S. economic recovery is strengthening,” said Millan Mulraine, deputy chief economist at TD Securities in New York.

    The Institute for Supply Management said its index of national factory activity for June was at 55.3, little changed from May’s 55.4 reading. A figure above 50 indicates expansion.

    Notably, a gauge of new orders hit a six-month high in a good omen for business capital spending, which appeared to struggle during the first half of the year.

    From transportation equipment to machinery and computer and electronic products, manufacturers were quite bullish in their assessment of business conditions.

    “It’s all very constructive. The second half of the year should look much, much better for capex [capital expenditure] investment,” said Jacob Oubina, senior U.S. economist at RBC Capital Markets in New York.

    In a separate report, Autodata Corp. said auto sales increased 1.2 percent to a seasonally adjusted annual pace of 16.98 million units last month, the highest rate since July 2006.

    The increase came even though there were two fewer selling days than a year ago.

    Most major automakers beat expectations, and sales at the top-selling manufacturer in the U.S. market, General Motors (GM), rose 1 percent despite its ongoing safety crisis. Analysts had expected GM’s sales to fall 6 percent.

    The reports reinforced views that the economy has rebounded after a weather-induced slump and helped push up U.S. stock prices, with the S&P 500 .SPX closing at a record high. Prices for U.S. Treasury debt fell, while the dollar was little changed against a basket of currencies.

    (SD-Agencies)