• US ISM Manufacturing PMI rose above 50 in March.
• The US Dollar gathers strength against its rivals after upbeat PMI data.

Business activity in the US manufacturing sector expanded at a modest pace in March, with the ISM Manufacturing PMI rising to 50.3 from 47.8 in February. This reading came in better than the market expectation of 48.4.

Other details of the report showed that the Employment Index edged higher to 47.4 from 45.9, the New Orders Index climbed to 51.4 from 49.2 and the Prices Paid Index, the inflation component, rose to 55.8 from 52.5.

Assessing the survey's findings,"the U.S. manufacturing sector moved into expansion for the first time since September 2022. Demand was positive, output strengthened and inputs remained accommodative," said Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, and added: "The Prices Index moved further upward in moderate expansion (or ‘increasing’) territory as commodity driven costs remain unstable