Manufacturing in the United States is on the rebound.
Monday the Institute of Supply Management, formerly the National Association of Purchasing Management, reported its monthly Purchasing Managers' Index rose in March to 55.6 from 54.7 in February, the highest since February 2000 and its second straight month of growth.
15 of the 20 industries surveyed for the index reported an upturn during the month, and that is expected to lead to a big gain in the nation’s gross domestic product for the first quarter of the year, says Newport Communications Senior Economist Jim Haughey.
“The numbers to date suggest that consumer spending is up 3.5-4% this quarter plus whatever rise occurs in March,” he says.
“This is two-thirds of GDP."
Haughey predicts that ivestment in buildings will be higher, given the large January and February rises in construction spending. Inventory investment will be less, contributing to higher GDP. And government spending will be higher, mostly for anti-terrorism activities.
Norbert J. Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee, said, "The March report certainly validates the turnaround for manufacturing. While the growth in production slowed, new orders rose to a very lofty level, in fact, reaching a level last seen in October 1986. It is encouraging that the rate of decline in employment is slowing and that a number of businesses indicated that they are starting to rehire."
Monday the Institute of Supply Management, formerly the National Association of Purchasing Management, reported its monthly Purchasing Managers' Index rose in March to 55.6 from 54.7 in February, the highest since February 2000 and its second straight month of growth.
15 of the 20 industries surveyed for the index reported an upturn during the month, and that is expected to lead to a big gain in the nation’s gross domestic product for the first quarter of the year, says Newport Communications Senior Economist Jim Haughey.
“The numbers to date suggest that consumer spending is up 3.5-4% this quarter plus whatever rise occurs in March,” he says.
“This is two-thirds of GDP."
Haughey predicts that ivestment in buildings will be higher, given the large January and February rises in construction spending. Inventory investment will be less, contributing to higher GDP. And government spending will be higher, mostly for anti-terrorism activities.
Norbert J. Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee, said, "The March report certainly validates the turnaround for manufacturing. While the growth in production slowed, new orders rose to a very lofty level, in fact, reaching a level last seen in October 1986. It is encouraging that the rate of decline in employment is slowing and that a number of businesses indicated that they are starting to rehire."
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