Earlier on Friday, an ISM (Institute of Supply Management) survey data on US factory activity had revealed that the Tempe, Arizona-based supply chain association’s index for US manufacturing activity had surged to a 37-year peak in March, largely boosted by a sharp uptick in new orders for US-borne core capital goods, as many Wall St.
economists had deciphered latest ISM factory activity data as a tangible signal of what could be the plausible beginning of a much-anticipated economic boom in US economy. In point of fact, in the day’s ISM survey data for US manufacturing activity came forth weeks after the US President Joe Biden had signed off a $1.9 trillion pandemic stimulus bill into a law, while on yesterday, Biden had proposed another $2 trillion in infrastructure investment, mostly in a bid to keep flowing a torrential high-tide of fresh liquidities in to the US economy, which in effect is expected to heat up a gradually recouping labour market in the country.
If truth is to be told, a 37-year high factory activity in March in the US as cited by the Tempe-based World’s largest and oldest supply chain association, ISM, comes over the heels of a broad-based expectation that the US economy would flesh up by the steepest pace since 1984 this year in context of multiple trillion-dollar stimulus packages despite risks of a higher national debt alongside an abrupt pickup in inflation.
US factory activity spikes to 37-year peak in March
On top of that, according to ISM’s survey data for US factory activity, ISM’s index for US manufacturing activity, accounted for roughly 11.9 per cent of entire US economy, climbed to a reading of 64.7 last month compared to the same time a year earlier, the index’s highest level since the December of 1983.
Meanwhile, recent ISM survey on US factory activity led to analysts’ beliefs that further expansions in US manufacturing already be on the deck, as factories' inventories still remained cachexic despite a robust demand-surge.