The American manufacturing sector posted its 20th consecutive month of expansion in March, according to the closely followed index from the Institute for Supply Management. The 61.2% reading was just above the 61.1% economists had expected. It was down slightly from the 61.4% in February, which was the highest level since May of 2004. March is the third month in a row the index came in above 60. Any reading over 50 indicates an expansion of the sector. Norbert Ore, Chairman of the ISM’s manufacturing business survey committee, commented, “The component indexes of the PMI remain at very positive levels and signal strong sector performance in the first quarter. While manufacturers are benefiting from strength in new orders and production, there is significant concern with regard to commodity prices. Many manufacturers indicate the prices they have to pay for inputs are rising, and there is concern about the impact of higher prices on their margins.” The prices index rose to 85%, up from 82% in February.
