US manufacturing activity picks up in March

WASHINGTON, USA: US manufacturing activity gained pace in March helped by a pickup in new orders and a rebound in production, the Institute for Supply Management said.

There has been a slight improvement in the US manufacturing outlook for the coming year after years of depressed conditions in industry. Image: Beeboys Fotolia

The ISM's purchasing managers index rose from 53.2 in February to 53.7 fin March. A reading above 50 denotes expansion.

The new orders component rose to 55.1 and production turned around from contraction in February, that was partly the result of extremely harsh winter weather. It is now reflecting solid expansion pace of 55.9.

But hiring of new employees slowed and customer inventories contracted during the month.

ISM said that comments from businesses surveyed reflected favourable demand and good business conditions with some respondents still noting impact from the unusually harsh winter weather across much of the country.

"Weather has created major delays on inbound materials and outbound sales. We need spring," said one survey respondent from the food and beverage industry.

Source: AFP via I-Net Bridge