The overall economy grew for the eleventh straight time after seven months of contraction, while the manufacturing sector expanded for the eighth time after 18 months of contraction, the Institute for Supply Management reported on Thursday.
According to the its monthly report on business, the ISM index jumped to 59.6 in March from 56.5 in February.
Economists predicted the index would rise to 56.8.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The closely watched prices paid index grew to 75.0 from 67.0. The employment index was 55.1, down from 56.1 the prior month.
The production index increased to 61.1 from 58.4, the new orders index rose to 61.5 from 59.5, the supplier deliveries index climbed to 64.9 from 61.1, the export orders index increased to 61.5 from 56.5, and the imports index rose to 57.0 from 56.0.
The inventories index increased to 55.3 from 47.3, the customers’ inventories index rose to 39.0 from 37.0, and backlog of orders fell to 58.0 from 61.0.
