The apparel, leather and allied industries lead an expansion of economic activity in the manufacturing sector in March, according to the latest Manufacturing ISM Report On Business, which is based on a survey of the nations supply executives.
It was the eighth consecutive monthly increase for the index, which showed that the overall economy grew for the 11th consecutive month. The index showed that new orders, production, inventories, input prices and exports rose in the month while employment and backlog of orders declined and delivery performance of suppliers slowed. It was the first time in 46 months that manufacturers inventories expanded.
The rate of growth as indicated by the PMI is the fastest since July 2004, said Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. 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 Februarys 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. 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.
The PMI numbers indicate that real gross domestic product in the first quarter grew at a rate of 5.4%.
