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US manufacturing activity hits 22-month high despite slowing in March
Monday, April 1, 2024 - 15:00
Actividad manufacturera Estados Unidos. Foto: Reuters.

Producer inflation rebounds for the fourth consecutive month at the fastest pace in eleven months.

Manufacturing activity in the United States fell in March, reaching 51.9 points from the previous 52.2, moving away from its fastest advance since July 2022, but it means accumulating three consecutive positive months, according to the manufacturing purchasing managers index (PMI) prepared by S&P Global.

The agency explained that the improvement in the general economic situation and demand translated into a new expansion of manufacturing production, which reached its highest level in 22 months.

At the same time, the pace of job creation also accelerated, but the growth of new orders moderated, although it continued to grow for the third month in a row. This last increase was "solid", although it was below the figure recorded in February. Total new orders grew faster than export orders, which only increased "slightly" in March.

In addition, companies generally expressed their preference for reducing inventories by being well supplied and for improving cash flow . Purchasing activity and inventories, both of inputs and finished products, fell after increases recorded in February. Regarding inflation, sharper increases were recorded in both input costs and production prices.

North American companies are confident that production will increase within twelve months thanks to expectations of improved economic conditions, marketing campaigns and the reinforcement of productive capacity.

"Increased capital spending has also boosted orders for machinery and equipment, a further sign of business confidence in the outlook," said Chris Williamson, chief economist at S&P Global Market Intelligence.

The analyst noted that demand levels were "encouraging." However, he recalled that the rebound in production inflation, which has risen for the fourth consecutive month and at the fastest pace in eleven months, is "well above" pre-pandemic times. This phenomenon was especially pronounced in consumer goods.



Europa Press