Economic activity in the manufacturing sector expanded in June at the fastest pace in three years, according to the Institute for Supply Management’s purchasing managers index for US manufacturing. June’s index reading was 57.8, up from May’s reading of 54.9.

Any reading above 50% generally indicates improving conditions.

The employment portion of the index rose to a reading of 57.2 in June from 53.5 in May, also indicating expansion at an increased pace.

MarketWatch reported American manufacturers are growing at the fastest pace in almost three years, reflecting improved economic conditions both at home and abroad. The index hit the highest reading since mid-2014 and was well above the 55.6% forecast in its survey forecast of economists.