Monday, April 03, 2017

ISM Manufacturing index decreased to 57.2 in March

by Bill McBride on 4/03/2017 10:04:00 AM

The ISM manufacturing index indicated expansion in March. The PMI was at 57.2% in March, down from 57.7% in February. The employment index was at 58.9%, up from 54.2% last month, and the new orders index was at 64.5%, down from 65.1%.

From the Institute for Supply Management: March 2017 Manufacturing ISM® Report On Business®

Economic activity in the manufacturing sector expanded in March, and the overall economy grew for the 94th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The March PMI® registered 57.2 percent, a decrease of 0.5 percentage point from the February reading of 57.7 percent. The New Orders Index registered 64.5 percent, a decrease of 0.6 percentage point from the February reading of 65.1 percent. The Production Index registered 57.6 percent, 5.3 percentage points lower than the February reading of 62.9 percent. The Employment Index registered 58.9 percent, an increase of 4.7 percentage points from the February reading of 54.2 percent. Inventories of raw materials registered 49 percent, a decrease of 2.5 percentage points from the February reading of 51.5 percent. The Prices Index registered 70.5 percent in March, an increase of 2.5 percentage points from the February reading of 68 percent, indicating higher raw materials prices for the 13th consecutive month. Consistent with generally positive comments from the panel, all 18 industries reported growth in new orders for the month of March."
emphasis added
ISM PMIClick on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was close to expectations of 57.1%, and suggests manufacturing expanded at as slightly slower pace in March than in February.

Another solid report.