Home | Growth | Manufacturing expands for the first time since August

Manufacturing expands for the first time since August

By
Font size: Decrease font Enlarge font
Manufacturing expands for the first time since August

Closely-watched indicator shows mixed results.

According to a closely-watched report, economic activity in the US manufacturing sector increased in March, the first expansion of the sector since August of last year.

The March Manufacturing ISM Report On Business indicated that its PMI registered 51.8%, an increase of 2.3 percentage points from the February reading of 49.5%. (Readings above 50.0% indicate expansion) "12 of our 18 industries reported sector growth."

Analysts had expected a reading of 49.0%.

New Orders expanded significantly during the month, rising 6.8 percentage points to 51.5%. The Production Index also rose, coming in at 55.3.8%, 2.5 percentage points higher than the previous month.

On the downside, employment fell in March, with the Employment Index registering at 48.1%, 0.4 percentage point below February.  Inventories of raw materials also remained in contraction territory, although rising 2 percentage points during the month to 47%.

Pricing expanding significantly, with the Prices Index rising 13 percentage points during the month to 51.5%, it first increase since October of 2014.

Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee, commented on the report, noting that “Manufacturing registered growth in March for the first time since August 2015, as 12 of our 18 industries reported sector growth, and 13 of our 18 industries reported an increase in new orders in March."

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha