Keywords: Economic Activity, Production, New Orders, Manufacturing, Employment, Backlog of Orders.
The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in March for the 32nd consecutive month, and the overall economy grew for the 34th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing continued its growth in March as the PMI registered 53.4 percent, an increase of 1 percentage point when compared to February's reading of 52.4 percent.
ISM's New Orders Index registered 54.5 percent in March, which is a decrease of 0.4 percentage point when compared to the February reading of 54.9 percent. This represents a continuation of growth for the 35th consecutive month, but at a slightly slower rate.
ISM's Production Index registered 58.3 percent in March, which is an increase of 3 percentage points when compared to the 55.3 percent reported in February. This indicates growth for the 34th consecutive month.
ISM's Employment Index registered 56.1 percent in March, which is 2.9 percentage points higher than the 53.2 percent reported in February. This is the 30th consecutive month of growth in the Employment Index.
The delivery performance of suppliers to manufacturing organizations was faster in March as the Supplier Deliveries Index registered 48 percent, which is 1 percentage point lower than the 49 percent reported in February. This is the second consecutive month supplier deliveries have been faster than the previous month, following 31 consecutive months in which supplier deliveries slowed.
The Inventories Index registered 50 percent in March, which is 0.5 percentage point higher than the 49.5 percent reported in February. This month's reading, at 50 percent, indicates that respondents are reporting inventories are unchanged from last month. An Inventories Index greater than 42.8 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).
ISM's Backlog of Orders Index registered 52.5 percent in March, which is 0.5 percentage point higher than the 52 percent reported in February. Of the 84 percent of respondents who reported their backlog of orders, 26 percent reported greater backlogs, 21 percent reported smaller backlogs, and 53 percent reported no change from February.
Of the 18 manufacturing industries, 15 are reporting growth in March, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Petroleum & Coal Products; Paper Products; Machinery; Miscellaneous Manufacturing; Wood Products; Furniture & Related Products; Transportation Equipment; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Fabricated Metal Products; and Electrical Equipment, Appliances & Components. The two industries reporting contraction in March are: Computer & Electronic Products; and Chemical Products.
ARC Advisory Group