U.S. manufacturing activity hit its highest point in more than 37 years in March, the Institute For Supply Management said Thursday. The last month alone marked the fastest rate of growth in the last 12 months, with the ISM index of national factory activity growing to a reading of 64.7% in March from 60.8% in February.
The index has grown for four consecutive months. It rose to 59.6% in March, its highest reading since February 2018, and 5.2 percentage points higher than February reading of 54.4%. A reading above 50% indicates the manufacturing economy is expanding. The manufacturing sector makes up about 11.39% of the U.S. economy, according to the National Association of Manufacturers.
Also, in a new report released on Monday by the Dallas Fed, Texas manufacturers expressed a highly optimistic outlook about the industry. The production index has never been higher in the history of the Fed’s Texas Manufacturing Outlook Survey. This data, along with greater demand involving new orders, suggests that the U.S. manufacturing industry will continue to grow at a fast pace.