Business activity in the U.S. held near a 10-month high in March, showing the economy is weathering rising fuel costs. The Institute for Supply Management-Chicago Inc. said today its barometer fell to 62.2 from 64 in February. Readings greater than 50 signal growth. Economists forecast the gauge would fall to 63, according to the median of 58 estimates in a Bloomberg News survey.
The strongest auto sales since 2008 combined with growing business investment in new equipment may keep propelling demand throughout all manufacturing industries, which account for about 12 percent of the economy. Increasing sales will probably also continue to underpin hiring, extending the biggest payroll gains since 2006.
“Output and hiring should remain robust,” Joel Naroff, president of Naroff Economic Advisors Inc. in Holland, Pennsylvania, said before the report. “Manufacturing has been strong, with order books continuing to fill.”
Economists’ projections in the Bloomberg survey ranged from 59.7 to 67.
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