Economic activity in the manufacturing sector, as measured by the Purchasing Managers' Index (PMI) expanded in March for the fourth consecutive month, and the overall economy grew for the 46th consecutive month, say the nation's supply executives in the latest manufacturing report from the Institute for Supply Management (ISM).
The PMI registered 51.3 percent, a decrease of 2.9 percentage points from February's reading of 54.2 percent, indicating expansion in manufacturing for the fourth consecutive month, but at a slower rate. Both the New Orders and Production Indexes reflected growth in March compared to February, albeit at slower rates, registering 51.4 and 52.2 percent, respectively. The Employment Index registered 54.2, an increase of 1.6 percentage points compared to February's reading of 52.6 percent. The Prices Index decreased 7 percentage points to 54.5, and the list of commodities up in price reflected far fewer items than in February. In addition, the Backlog of Orders, Exports and Imports Indexes all grew in March.
Of the 18 manufacturing industries, 14 reported growth in March, including: Fabricated Metal Products; Transportation Equipment and Primary Metals. The three industries reporting contraction in March are: Petroleum & Coal Products; Chemical Products; and Machinery.