The manufacturing sector expanded in March after 16 consecutive months of contraction, according to the latest Manufacturing ISM Report on Business.
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The Manufacturing Purchasing Managers Index (PMI) was 50.3% in March, up 2.5 percentage points from February’s index of 47.8%. A PMI above 48.7% generally indicates an expansion.
The overall economy continued in expansion for the 47th month.
- The New Orders Index moved back into expansion territory at 51.4%, a 2.2-percentage point increase from the 49.2% figure recorded in February.
- The Production Index reading of 54.6% is 6.2 percentage points higher than February’s figure of 49.2%.
- The Prices Index registered 55.8%, up 3.3 points from the 52.5% reported in February.
- The Backlog of Orders Index remained the same at 46.3%.
- The Employment Index registered 47.4%, up 1.5 points from February’s 45.9%.
- The Supplier Deliveries Index figure of 49.9% is down 0.2 points from the 50.1% recorded in February.
- The Inventories Index was at 48.2%, up 2.9 points from the February reading of 45.3%.
- The New Export Orders Index reading remained the same at 51.6%.
- The Imports Index remained in expansion territory at 53%, the same reading as February.
Both the New Export Orders Index and the Imports Index registered their highest readings since July 2022.
The four manufacturing industries that reported growth in March are: Food, Beverage & Tobacco Products; Fabricated Metal Products; Chemical Products; and Transportation Equipment.
