The manufacturing sector contracted in March following two months of expansion, according to the Manufacturing ISM Report on Business. The report was issued by the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
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The Manufacturing Purchasing Managers Index (PMI) was 49%, 1.3 percentage points lower than February.
Before expanding in January and February, the sector had contracted for 26 consecutive months.
Here’s the breakdown of the March PMI:
- The New Orders Index fell 3.4 percentage points, from 48.6% in February to 45.2%, contracting for the second consecutive month after three months of expansion.
- The Production Index dipped 2.4 percentage points, from 50.7% to 48.3%.
- The Prices Index continued to expand, up 7 percentage points from 62.4% to 69.4%.
- The Backlog of Orders Index was down 2.3 percentage points, from 46.8% to 44.5%.
- The Employment Index was down 2.9 percentage points, from 47.6% to 44.7%.
- The Supplier Deliveries Index was down 1 percentage point, from 54.5% to 53.5%.
- The Inventories Index was up 3.5 percentage points, from 49.9% to 53.4%.
- The New Export Orders Index was down 1.8 percentage points, from 51.4% to 49.6%.
- The Imports Index was down 2.5 percentage points, from 52.6% to 50.1%.
Nine manufacturing industries reported growth:
- Textile Mills
- Petroleum & Coal Products
- Fabricated Metal Products
- Primary Metals
- Computer & Electronic Products
- Nonmetallic Mineral Products
- Transportation Equipment
- Electrical Equipment, Appliances & Components
- Miscellaneous Manufacturing
Meanwhile, seven industries reported contraction:
- Wood Products
- Paper Products
- Plastics & Rubber Products
- Furniture & Related Products
- Chemical Products
- Food, Beverage & Tobacco Products
- Machinery
