Economic Watch: Manufacturing, Leading Indicators, Existing Homes All Move Higher
Manufacturing activity this month hit a three-year high, while other reports showed healthy increases in where the economy is headed over the next several months.
U.S. manufacturers experienced a robust and accelerated improvement in their overall business conditions in March, as the IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index rose to a reading of 55.7, from 55.3 in February. A reading above 50 indicates expansion.
The gauge signaled the strongest upturn in manufacturing operating conditions since March 2015. Stronger contributions from the employment, inventories and suppliers’ delivery times components helped to lift the headline reading.
The latest data also pointed to robust rises in manufacturing production and new orders, although in both cases the rates of expansion eased since February.
Also, input buying increased at the fastest pace since September 2014, which a number of survey respondents linked to pre-purchasing and stock-building ahead of expected raw material price rises, particularly steel-related items. A number of survey respondents cited higher prices for metals and increased charges by suppliers amid strong demand for raw materials.
The findings are part of a larger report that includes a look at the services industry. The IHS Markit Flash U.S. Composite PMI Output Index declined slightly to a reading of 54.3 this month from 55.8 in February.
“The Flash PMI surveys indicate that the economy likely continued to expand at a robust pace in March, rounding off a solid opening quarter of the year,” said Chris Williamson, chief business economist at IHS Markit. “The surveys are running at a level consistent with annualized first quarter gross domestic product growth approaching 2.5%, though we note that official GDP estimates may once again understate growth in the opening quarter of the year.”
He said the survey found average prices charged for goods and services are rising at one of the strongest rates …Read the rest of this story
