The purchasing managers group’s measure of orders, which jumped more than 6 points, reached the highest point since the start of 2004. The increase in bookings, along with declining inventories, should continue to underpin production. The ISM’s gauge of output improved to a more than two-year high, though factory employment remained weak.
Improved factory activity, along with strength in housing and auto sales, suggest the fledgling recovery is beginning to broaden. The gradual reopening of businesses and steady improvement in consumer demand that left inventories depleted are boosting manufacturing, helping support the economic rebound amid elevated unemployment and layoffs across industries.
Even the Atlanta Fed’s GDP real-time tracker is showing a v-shape rebound at 29% QoQ.