US manufacturing in growth mode

The US manufacturing sector grew for an eighth consecutive month in March, surprising many analysts.

The US manufacturing sector grew for an eighth consecutive month in March, surprising many analysts.

The US Institute for Supply Management’s purchasing managers index (PMI) rose to 59.6% in March from 56.5% in February, (readings above 50.0 indicate a rise in activity.

The rate of growth as indicated by the PMI is the fastest since July 2004. The PMI reveals both new orders and production rose above 60% this month, closing the first quarter with significant momentum going forward.

While the Employment Index decreased 1 percentage point to 55.1% from February’s reading of 56.1% signs for employment in the sector continue to improve as the index registered a 10% month-over-month improvement, indicating that manufacturers are continuing to fill vacancies.