Manufacturing PMI Rises To 52.5 In March, Exceeding Analyst Expectations

On March 21, 2024, S&P Global released U.S. PMI reports for March. The reports indicated that Manufacturing PMI improved from 52.2 in February to 52.5 in March, compared to analyst consensus of 51.7. The rate of growth in the manufacturing sector was the fastest since May 2022.

Services PMI declined from 52.3 in February to 51.7 in March, while analysts expected that it would fall to 52. Composite PMI decreased from 52.5 to 52.2, compared to analyst forecast of 51.5.

S&P Global commented: “The overall slowdown in the pace of output growth reflected a loss of momentum in the service sector, where activity rose at the weakest pace in three months […] The survey data point to another quarter of robust GDP growth accompanied by sustained hiring as companies continue to report new order growth.”

U.S. Dollar Index tested session highs after the release of the better-than-expected Composite PMI report. Currently, U.S. Dollar Index is trying to settle above the 103.75 level. The yield of 2-year Treasuries is moving higher, providing additional support to the American currency.

Gold  pulled back from historic highs and settled below the $2000 level as traders focused on the rebound of the U.S. dollar.

SP500  settled near historic highs at 5260. Stock traders remain bullish as the PMI reports indicated that U.S. economy remained in a good shape despite high interest rates.

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