The United States manufacturing sector expanded last month according to data released by the Institute for Supply Management. The manufacturing purchasing managers’ (PMI) index rose in March to 53.4, beating expectations of a 53.0 reading. February PMI posted at 52.4.
The U.S. ISM sub-indexes last month were improved. The new orders index stood at 54.5 in March from 54.9 in February, while the production index jumped to 58.3 from 55.3.
The factory employment index increased to 56.1 last month from 53.2. The inventory index edged up to 50.0 from 49.5.
However, a separate report on construction projects showed a decline for the second consecutive month in February, showing the struggling sector is failing to build upon the momentum seen late last year. Construction spending dropped by 1.1 percent in February, marking the biggest drop since July, to a seasonally adjusted annual rate of around $808 billion.
The dollar showed mixed reaction after the data, but overall failed to gain strength. USDCHF remains below the earlier high of 0.9070. USDJPY continued to decline to 82.04 versus an early Asian session high of 83.29.