The US Manufacturing PMI has reached its highest performance since 1983

The U.S. manufacturing increased the most in March since 1983, thanks to high order volume and factors of production over 17 years. Manufacturing activity jumped to 64.7 from 60.8 a month earlier, according to data from that the Institute for Supply Management released on Thursday. Stronger growth in new orders and production indicates increased demand from households and businesses as the expansion in the number of vaccinations, reduced pandemic-related restrictions, and tax breaks bring the economy to a fast recovery.

US uncompleted orders indicator, according to ISM estimates, rose to its strongest value since 1993 in March, and estimates for raw materials time of delivery reached an almost 47-year high. Both indices highlight the supply problems faced by manufacturers. All but one of the 18 manufacturing industries reported growth in March.

Share prices continued to rise after the release of the report. US stocks climbed to a record high on the first day of the second quarter as positive ISM data and a boost in stimulus in the world's largest economy strengthened optimism for a global recovery.

The S&P 500 closed above 4000 for the first time as investors reacted to President Joe Biden's recently unveiled $2.25 trillion spending plan. In addition, the US employment report is expected to be released, which, according to the forecast of economists, will show the fastest hiring rates in five months. Shares of technology companies became the growth leaders.

The decline in the Treasury bonds yield supported the stock market. The Treasuries fell to 1.67%. Oil rose in price after the OPEC+ alliance came to a consensus concerning the possibility of a gradual increase in production over the next three months by 1 million barrels per day.

Main market quotes:

S&P 500 (F) 4,020.12 +10.12 (+0.25%)

Dow Jones 33,153.21 +171.66 (+0.52%)

DAX 15,107.17 +98.83 (+0.66%)

FTSE 100 6,737.30 +23.67 (+0.35%)

USD Index 92.903 -0.333 (-0.36%)

Important events:
  • – US Nonfarm Employment Change (Mar) at 15:30 (GMT+3);
  • – US Unemployment Rate (Mar) at 15:30 (GMT+3).

by Justforex, 2021.04.02

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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