|
Manufacturing index soars
|
 |
March 31, 1999: 12:32 p.m. ET
Chicago index bests expectations while U.S. factory orders show sluggishness
|
NEW YORK (CNNfn) - A closely watched manufacturing indicator rose in March, a report showed Wednesday, a sign of continued economic expansion that immediately pushed down Treasury prices.
For March, the Chicago Purchasing Managers index came in at a seasonally adjusted 57, much higher than the consensus forecast of 52 and 4.1 points above the February reading of 52.9, the National Association of Purchasing Management (NAPM)-Chicago reported.
In a separate report, the U.S. Commerce Department said factory orders dropped 2.5 percent in February, the biggest decrease since April 1995. Analysts had predicted a slight rise of 0.7 percent.
A purchasing index below 50 signals a slowing manufacturing economy, while a reading higher than 50 suggests expansion. NAPM-Chicago reported the economic barometer confirmed "indications of modest growth."
The report, closely watched on the bond market, immediately triggered a sell-off. The bellwether 30-year U.S. Treasury bond was down 13/32, bringing the yield up to 5.612 percent. Before the report was released at 10 a.m. ET, the bond was trading down 3/32.
The Commerce Department also issued a revised figure for durable-goods orders, saying they were down 4.9 percent in February. For January, orders had risen 1.7 percent to $349.6 billion. 
-- from staff and wire reports
|
|
|
|
|
 |
|
