The latest report by IHS Markit revealed on Thursday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index(PMI) came in at 59.1 in March, up from 58.6 in February but broadly in line with the earlier released “flash” estimate of 59.0. The March reading pointed to the second-strongest improvement in the health of the U.S. manufacturing sector since data collection began in May 2007.

Economists had forecast the index to stay unrevised at 59.0.

According to the report, the headline figure was supported by the sharpest rise in new orders since June 2014, although production was reportedly held back by supply shortages. In addition, inflationary pressures intensified, with cost burdens rising at the fastest rate for a decade. Finally, output expectations strengthened, with the degree of confidence being the second-highest for over six years, as businesses were buoyed by hopes of a successful vaccine roll-out, fresh stimulus and a resulting boost to new sales.