number: U.S. manufacturers grew faster in March, and the main index hit a 38-year high, indicating that the U.S. economy is accelerating.
The Institute for Supply Management said its manufacturing index jumped to 64.7% from 60.8% last month. Readings above 50% indicate growth, and readings above 55% are considered exceptions.
This growth exceeded Wall Street’s expectations. Economists surveyed by Dow Jones and the Wall Street Journal predict that the ISM index totals 61.7%.
read: Vaccines and stimulus measures boost consumer confidence to pandemic highs
what’s happening: Seventeen of the 1
The production index rose 4.9 points to 68.1%, while the new orders index rose 3.2 points to 68%.
The employment barometer rose for the fourth consecutive month, rising to a three-year high of 59.6%.
read: According to ADP, as the economy grows, the United States has added 517,000 private sector jobs
also: As the economy is booming, job opportunities are back
Economists estimate that the United States may add nearly 700,000 new jobs in March, or even more. The government will release the high-profile US employment report on Friday morning, even though the market is closed due to the Good Friday holiday.
The biggest problem currently facing manufacturers is the shortage of some key supplies that are hindering production and increasing prices. Finding enough skilled workers, especially during a pandemic, is also a long-term problem.
“Business conditions are beneficial to our industry and company. These restrictions are mainly related to the availability of parts.” An executive of a transportation equipment manufacturer said. “Manpower is also a constraint. Hiring new members is a challenge.”
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The ISM index is compiled based on a poll of senior managers who were asked whether the business is good or bad. This indicator tends to rise or fall with the health of the economy.
Big picture: The manufacturing industry has led to a rebound in the United States, and production has returned to normal levels, but it will not be possible to fully recover before the global pandemic subsides.
The global supply chain has been disrupted, which makes it more difficult for manufacturers to obtain the parts they need to meet their growing demand for goods. The recent incident in which a large ship got stuck in the Suez Canal only temporarily exacerbated the problem.
Look: Visually observe how the unfair pandemic has reshaped work and family
What are they talking about Gus Faucher, chief economist at PNC Financial Services, said: “As consumers continue to spend stimulus money, people feel more assured that the company reopens and growth will remain very strong in the coming months. Momentum.” “U.S. manufacturers will benefit from strong economic growth at home and abroad.”
Market Reaction: Dow Jones Industrial Average Dow Jones Industrial Average,
And S&P 500 SPX,
After the report was released, trading expanded earnings on Thursday.