American Factory Activity Is on the Rise [Report]

Recent surveys of U.S. manufacturers suggest the nation’s industrial sector is experiencing strong growth despite the pandemic and other headwinds.

Analysts from London research firm IHS Markit told The Wall Street Journal that an “impressive” vaccine rollout and government stimulus measures contributed to easing virus restrictions and a brighter economic outlook. The firm’s purchasing managers index for U.S. manufacturing in the first few weeks of April reportedly stood at 60.6, an increase from 59.1 in March — despite difficulties obtaining raw materials that strained supply chains and contributed to increased backlogs.

The fastest expansion in the firm’s U.S. services index in its 12-year history added to the optimism.

“The U.S. economy is enjoying a strong start to the second quarter, firing on all cylinders,” IHS Chief Business Economist Chris Williamson told the Journal.

Although the recovery is far from a sure thing — it largely depends on successful vaccination campaigns keeping COVID-19 and its potential new variants at bay — early signs from abroad were also promising. IHS analysts found that European Union nations reported a record rise in factory orders and the strongest hiring numbers since late 2018. The U.K., meanwhile, reported its strongest PMI in eight years, Australia reported its highest in five years, and Japan appears likely to see its first expansion since the pandemic began.