Source: Bloomberg
Author: Mark Niquette
Thanks to the large rebound and demand for strong production, the US manufacturing activities in the United States have expanded for the first time since September 2022, but the cost of investment has also increased.
According to data released by the US Supply Management Association (ISM) on Monday, the manufacturing index rose 2.5 points to 50.3.Although it has just passed the segmentation line of 50, it has ended with a trend of atrophy for 16 consecutive months.
The index is higher than the expectations of all economists who received Bloomberg survey.
The production indicators rose significantly 6.2 month -on -month, the largest increase since mid -2020.
New order indicators returned to the expansion area after shrinking February.In March, the employment index of manufacturing fell less than the previous month.
Timothy Fiore, chairman of the
ISM Manufacturing Business Investigation Committee, said in a statement that "the demand is still in the early stages of recovery and there are significant signs of improvement."
More optimistic
The executives of the US procurement and supply management departments have recently expressed their optimistic views on manufacturing prospects.The further growth of orders highlights the toughness of consumer demand and commercial investment, indicating that enterprises have made great progress in promoting inventory and sales trends.
ISM data shows that last month's factory inventory decreased below February, and an indicator of a customer inventory contracted faster.
At the same time, the cost of raw materials and other inputs rises, indicating that inflation pressure is still stubborn.Pay price indicators rose 3.3 to 55.8, the highest since July 2022.
At the same time, orders, backlog orders and import indicators from overseas customers are flat in March.
