ISM Manufacturing PMI Climbs Above 50, Beating Analyst Expectations

On April 1, 2024, the Institute for Supply Management released ISM Manufacturing PMI report for March. The report indicated that ISM Manufacturing PMI increased from 47.8 in February to 50.3 in March, compared to analyst consensus of 48.4. Numbers above 50 show expansion.

The New Orders index improved from 49.2 in February to 51.6 in March, while Production index increased from 48.4 to 54.6.

The Institute for Supply Management commented: “The U.S. manufacturing sector moved into expansion for the first time since September 2022. Demand was positive, output strengthened and inputs remained accommodative.”

Today, traders also had a chance to take a look at the final reading of the S&P Global Manufacturing PMI report for March. The report indicated that S&P Global Manufacturing PMI declined from 52.2 in February to 51.9 in March, compared to analyst consensus of 52.5.

U.S. Dollar Index tested new highs after the release of the better-than-expected ISM Manufacturing PMI report. Currently, U.S. Dollar Index is trying to move above the 105 level. Traders bet that Fed will be forced to be more hawkish as the U.S. economy stays strong.

Gold  pulled back towards $2230 after testing historic highs. The ISM Manufacturing PMI report may put additional pressure on gold prices as gold markets are yield-sensitive.

SP500 pulled back towards 5255 as traders reacted to the PMI reports. While strong economic data is bullish for stocks, traders are worried about high interest rates.

For a look at all of today’s economic events, check out our economic calendar.