Solid Growth For Manufacturing In PMI Flash Report

Solid growth for manufacturing highlights an otherwise soft PMI flash report for March. The manufacturing PMI came in at 55.7 which is right at a 3-year high. But the report's service sample is showing volatility, shooting suddenly higher in February and now falling back to a more moderate 54.1. Together they make for a 54.3 composite score which is down nearly 2 points from February.

Strength on the manufacturing side includes orders, production and employment but price pressures are perhaps the most telling result. A number of survey respondents cited higher prices for metals and increased charges by suppliers amid strong demand for raw materials. At the same time, selling prices rose at the strongest pace in just over 6-1/2 years.

Despite the slowing on the service side, orders and employment remain strong. And price pressures are also evident. Today's results should firm expectations for yet another sky-high reading in the ISM manufacturing report though they may temper expectations for ISM's non-manufacturing data.