Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the U.S. on Tuesday. The U.S. preliminary manufacturing purchasing managers' index (PMI) rose to 55.3 in March from 55.1 in February, beating expectations for a decline to 54.9. It was the highest level since October 2014.

A reading above 50 indicates expansion in economic activity.

The Markit Chief Economist Chris Williamson said that "manufacturing regained further momentum from the slowdown".

The preliminary output index increased to 58.2 in March from 57.3 in February.

The preliminary new orders index rose to 56.4 in March from 55.8 in February.