Input Stories

Manufacturing activity rose to a 21-month high in March, according to Bloomberg.

What’s going on: “The S&P Global flash March factory purchasing managers index edged up 0.3 point to 52.5, marking the third straight month above a level of 50 that indicates expansion.”

• “Manufacturing output growth was the strongest since May 2022, driven by improving demand both at home and abroad, while the employment gauge reached an eight-month high.”
• The U.S. is performing better than other major economies despite interest rate hikes aimed at tamping down inflation.

However … “The group’s composite measure of prices received by manufacturers and service providers rose to an almost one-year high on the back of continued wage growth and higher fuel costs, suggesting stubborn inflation.”

• Though there were signs that demand for services was starting to pick up this month, there were also reports that companies were delaying new projects due to elevated prices.
• These higher costs help account for the Federal Reserve’s continued “cautious” interest-rate approach.