The rate of growth in the economy's manufacturing sector picked up in March, rebounding from a two-year low hit a month earlier.
The Institute of Supply Management said its manufacturing purchasing managers' index rose to 55.3 in March from 54.2 the previous month. February’s reading had been its lowest level since November 2016.
Economists had forecast a reading of 54.5.
A reading above 50 for the index indicates expansion in the sector and a reading below 50 signals contraction.
“Comments from the panel reflect continued expanding business strength, supported by gains in new orders and employment,” Timothy Fiore, chairman of the ISM business survey committee, said.
The more forward-looking new orders index advanced to 57.4 in March from 55.5 a month earlier.
The employment index rose to 57.5 from 52.3, while the prices paid index rose more than expected to 54.3 from a previous reading of 49.4.
“The manufacturing sector continues to expand, demonstrated by improvements in the PMI three-month rolling average, which is consistent with overall manufacturing growth projections,” Fiore concluded.
