The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management Manufacturing (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector grew in March, with the overall economy notching a 10th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing grew in March, as the Manufacturing PMI registered 64.7 percent, 3.9 percentage points higher than the February reading of 60.8 percent. This is the highest reading since December 1983 (69.9 percent); prior to that, the Manufacturing PMI registered 66 percent in November 1983.
ISM’s New Orders Index registered 68 percent in March, up 3.2 percentage points compared to the 64.8 percent reported in February. This indicates that new orders grew for the 10th consecutive month. This is the highest reading since January 2004, when the index registered 70.6 percent.
The Production Index registered 68.1 percent in March, 4.9 percentage points higher than the February reading of 63.2 percent, indicating growth for the 10th consecutive month. This is the highest reading since January 2004, when the index registered 69.3 percent.
ISM’s Employment Index registered 59.6 percent in March, 5.2 percentage points higher than the February reading of 54.4 percent. The Employment Index grew for the fourth month in a row. This is the highest reading since February 2018 (59.8 percent).
The delivery performance of suppliers to manufacturing organizations was slower in March, as the Supplier Deliveries Index registered 76.6 percent. This is 4.6 percentage points higher than the 72 percent reported in February. This is the highest reading since April 1974 — at the end of the 1973 oil crisis — when the index registered 82.1 percent.
The Inventories Index registered 50.8 percent in March, 1.1 percentage points higher than the 49.7 percent reported for February. The Inventories Index moved back into growth territory after contracting for one month.
ISM’s Backlog of Orders Index registered 67.5 percent in March, a 3.5-percentage point increase compared to the 64 percent reported in February, indicating order backlogs expanded for the ninth straight month. March’s reading is the highest since reporting for this subindex began in January 1993.
Of the 18 manufacturing industries, 17 reported growth in March, in the following order: Textile Mills; Electrical Equipment, Appliances & Components; Machinery; Computer & Electronic Products; Apparel, Leather & Allied Products; Furniture & Related Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Primary Metals; Plastics & Rubber Products; Paper Products; Transportation Equipment; Chemical Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Printing & Related Support Activities; and Petroleum & Coal Products. No industries reported contraction in March.