Preliminary data released by IHS Markit on Wednesday revealed that U.S. private sector business activity recorded its second-fastest upturn for six years in March.

According to the report, the Markit flash manufacturing purchasing manager's index (PMI) came in at 59.0 in March, up from 58.6 in February. Economists had expected the reading to increase to 59.3. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. The improvement in operating conditions was the second-quickest since April 2010 amid stronger client demand, but data also highlighted the most severe supply chain disruption on record, the report notes. Nevertheless, the upturn in new business accelerated to the sharpest since June 2014, with new export orders growing solidly. Meanwhile, the pace of job creation slowed slightly as many manufacturers highlighted struggles finding suitable candidates to fill vacancies.

The Markit flash services purchasing manager's index (PMI) rose to 60.0 in March, up from 59.8 in the previous month. Economists had expected the reading to grow to 60.0. The rate of expansion was the steepest since July 2014, supported by a stronger increase in new orders amid improved client demand and the loosening of coronavirus restrictions in some states. Moreover, the advance in total new sales was underpinned by a renewed growth in new export orders.

Overall, IHS Markit Flash U.S. Composite PMI Output Index came in at 59.1 in March, down slightly from 59.5 in February, signaling the second-fastest private sector upturn for six years.

Chris Williamson, Chief Business Economist at HIS Markit noted: “Another impressive expansion of business activity in March ended the economy’s strongest quarter since 2014. The vaccine roll-out, the reopening of the economy and an additional $1.9 trillion of stimulus all helped lift demand to an extent not seen for over six years, buoying growth of orders for both goods and services to multi-year highs.”