- Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc.
U.S. manufacturing expansion accelerated for a second consecutive month in March, as production and orders rose despite slowdown in employment growth, triggering off a rise in global stock markets and the U.S. Dollar. The greenback recovered earlier losses against the Euro and Japan's Yen on the back of the positive news, which adds to signs that the nation's economy manages to shake off winter slump and builds forward momentum into the June quarter.
The Institute for Supply Management's index inched higher to 53.7 compared to 53.2 in the previous month, with a reading above 50 pointing at expansion in the sector. Although it came against analysts forecasts for 54.0 and stayed below November's recent peak of 57, the highest since April 2011, it was offset by a positive Markit PMI data showing that the U.S. manufacturing sector continues to expand at a solid pace. A strong increase in manufacturing output levels throughout March was mainly driven by a sturdy domestic demand.
Separately, according to the Commerce Department, U.S. construction spending barely increased in February, edging up 0.1% to an annual rate of $945.7 billion, in line with analysts expectations. January's reading was revised to a 0.2% decline instead of the previously reported 0.1% increase.
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