US manufacturing surges to a 3-year high in February

US manufacturing expanded more than expected in February, according to the Institute of Supply Management.

The monthly purchasing manager’s index jumped to 57.7, the highest since December 2014 and more than economists’ forecast for 56.2.

According to ISM, orders rose at the fastest pace since February 2013.

Earlier regional manufacturing surveys, including those from Philadelphia and New York, had also pointed to an overall improvement in the sector.

“Growth is being driven by robust domestic demand, stemming in turn from buoyant consumers and increased investment spending by the energy sector in particular,” said Chris Williamson, the chief business economist at IHS Markit.

Markit Economics’ monthly PMI was 54.2, lower than economists’ forecast for 54.5 according to Bloomberg.

“Manufacturing is far from booming, however, as the strong dollar means near-stagnant exports continue to act as a drag on growth,” he added.

NOW WATCH: We went inside a Sears and saw why the company is dying

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.