Posted April 1, 2010
ISM: Manufacturing growth continues
Manufacturing grew for the eighth straight month in March according to the latest Manufacturing ISM Report On Business.
The PMI registered 59.6 percent, an increase of 3.1 percentage points when compared to February's seasonally adjusted reading of 56.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
Both new orders and production rose above 60 percent this month, closing the first quarter with significant momentum going forward.
"Although the Employment Index decreased 1 percentage point to 55.1 percent from February's reading of 56.1 percent, signs for employment in the sector continue to improve as the index registered a 10 percent month-over-month improvement, indicating that manufacturers are continuing to fill vacancies," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The Inventories Index provided a surprise as it indicated growth for the first time following 46 months of liquidation — perhaps signaling manufacturers' willingness to increase inventories based on expected levels of activity."
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