Investing.com - Manufacturing activity in the U.S. expanded at a slower rate than expected in March, dampening optimism over the health of the economy, industry data showed on Tuesday.
In a report, the Institute for Supply Management said its index of purchasing managers rose to 53.7 last month from a reading of 53.2 in February. Analysts had expected the manufacturing PMI to increase to 54.0 in March.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The New Orders Index registered 55.1, an increase of 0.6 points from February’s reading of 54.5. The Production Index registered 55.9, an increase of 7.7 points compared to February’s reading of 48.2.
Employment grew for the ninth consecutive month, but at a lower rate by 1.2 points, registering 51.1 compared to February's reading of 52.3.
Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD rising 0.19% to trade at 1.3797.
Meanwhile, U.S. equity markets were higher after the open. The Dow Jones Composite rose 0.55%, the S&P 500 advanced 0.55%, while the Nasdaq index rallied 1.3%.