The Institute for Supply Management reported that the Manufacturing PMI dropped to 46.3% in March, 1.4 percentage points lower than the recorded 47.7% in February. This is the fifth consecutive month of contraction for the Manufacturing PMI.
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Here’s the breakdown of the March PMI:
- New Orders Index: 44.3%, a 2.7 percentage point decrease month-over-month
- Production Index: 47.8%, a 0.5 percentage point increase month-over-month
- Prices Index: 49.2%, a 2.1 percentage point decrease month-over-month
- Backlog of Orders Index: 43.9%, a 1.2 percentage point decrease month-over-month
- Employment Index: 46.9%, a 2.2 percentage point decrease month-over-month
- Supplier Deliveries Index: 44.8%, a 0.4 percentage point decrease month-over-month
- Inventories Index: 47.5%, a 2.6 percentage point decrease month-over-month
- New Export Orders Index: 47.6%, a 2.3 percentage point decrease month-over-month
- Imports Index: 47.9%, a 2.0 percentage point decrease month-over-month
“The U.S. manufacturing sector contracted again, with the Manufacturing PMI® declining compared to the previous month. With Business Survey Committee panelists reporting softening new order rates over the previous 10 months, the March composite index reading reflects companies continuing to slow outputs to better match demand for the first half of 2023 and prepare for growth in the late summer/early fall period,” said Timothy R. Fiore, ISM Chairman.
Six manufacturing industries saw growth in March:
- Machinery
- Petroleum & Coal
- Printing & Related Support Activities
- Miscellaneous Manufacturing
- Fabricated Metal Products
- Primary Metals
Furniture & Related Products; Nonmetallic Mineral Products; Textile Mills; Plastics & Rubber Products; Paper Products; Wood Products; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Chemical Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; and Transportation Equipment all reported a decrease in March.
