Boxes containing the Pfizer-BioNTech COVID-19 vaccine are prepared to be shipped at the Pfizer Global Supply Kalamazoo manufacturing plant in Portage, Michigan. File Photo by Morry Gash/EPA-EFE
April 1 (UPI) -- Economic trends show that U.S. manufacturing activity hit its highest point in more than 37 years in March, the Institute For Supply Management said Thursday.
The last month alone marked the fastest rate of growth in the last 12 months, with the ISM index of national factory activity growing to a reading of 64.7% in March from 60.8% in February, figures show in the ISM report.
A reading above 50% indicates the manufacturing economy is expanding and below 50% indicates it's contracting, according to ISM, which uses the Purchasing Managers' Index for economic trends.
The employment index has grown for four consecutive months. It rose to 59.6% in March, its highest reading since February 2018, and 5.2 percentage points higher than February reading of 54.4%.
The manufacturing economy has been expanding for 10 consecutive months after contracting in April and May, figures show, amid closures due to the COVID-19 pandemic. Since then, the pandemic has shot up demand with companies struggling to keep up with it.
"The manufacturing economy continued its recovery in March," ISM Chair Timothy Fiore said in a statement Thursday. "However, Survey Committee Members reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus (COVID-19) impacts limiting availability of parts and materials."
The manufacturing sector makes up about 11.39% of the U.S. economy, according to the National Association of Manufacturers.
The S&P 500 hit a new milestone above 4,000 amid investor reaction to the manufacturing growth, MarketWatch reported.
On Wednesday, the S&P 500 closed the month with a previous record high of 3,972.89.
Technology stocks contributed to the gains as investors reacted to President Joe Biden's $2 trillion infrastructure plan. The plan would raise the corporate tax rate to fund the plan within 15 years.
RELATED ADP, Moody's: U.S. added 517,000 new jobs in March
upi.com/7085961
No comments:
Post a Comment