In production

Supported by public programs like the Infrastructure Investment and Jobs Act, the Chips Act, and the Inflation Reduction Act, there has been increased investment in the manufacturing sector. In 2023, investment in manufacturing sector construction rose 71% year-on-year to USD 2.35 trillion.  However, given the lead time between new plant construction and operation, those investments in facilities have not yet driven a material uplift in associated machinery orders or output.  Last month may have marked a turning point.  After spending 16 consecutive months at a level below 50, the Institute for Supply Management (ISM) reported yesterday that the US Purchasing Manager Index (PMI) rose to 50.3 in March from 47.8 in the previous month.

Source: Institute for Supply Chain Management, Bloomberg, April 2024