March 2022 Manufacturing ISM Report On Business Reports Manufacturing Achieved 22nd Consecutive Month of Growth

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.   Manufacturing ISM Report Economic activity in the manufacturing sector grew in March, with the overall economy achieving a 22nd consecutive month of growth, say the nation’s supply executives in the Manufacturing ISM Report On Business.

Manufacturing grew in March, as the Manufacturing PMI registered 57.1 percent, 1.5 percentage points lower than the February reading of 58.6 percent. This is the lowest reading since September 2020, when the composite index registered 55.4 percent. The Manufacturing PMI continued to indicate strong sector expansion and U.S. economic growth in March. All five subindexes that directly factor into the Manufacturing PMI were in growth territory.

ISM’s New Orders Index registered 53.8 percent in March, a decrease of 7.9 percentage points compared to the 61.7 percent reported in February. This indicates that new orders grew for the 22nd consecutive month.

The Production Index registered 54.5 percent in March, 4 percentage points lower than the February reading of 58.5 percent, indicating growth for the 22nd consecutive month.

ISM’s Employment Index registered 56.3 percent in March, 3.4 percentage points above the February reading of 52.9 percent. The index reported a seventh consecutive month of expansion.

The delivery performance of suppliers to manufacturing organizations was slower in March, as the Supplier Deliveries Index registered 65.4 percent, 0.7 percentage point lower than the 66.1 percent reported in February.

The Inventories Index registered 55.5 percent in March, 1.9 percentage points higher than the 53.6 percent reported for February. Manufacturing inventories expanded at a faster rate compared to February and are again climbing.

ISM’s Backlog of Orders Index registered 60 percent in March, a 5-percentage point decrease compared to the 65 percent reported in February, indicating order backlogs expanded for the 21st straight month.

Fifteen manufacturing industries reported growth in March, in the following order: Apparel, Leather & Allied Products; Furniture & Related Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Machinery; Textile Mills; Transportation Equipment; Fabricated Metal Products; Paper Products; Chemical Products; Computer & Electronic Products; Nonmetallic Mineral Products; Primary Metals; and Plastics & Rubber Products. The two industries reporting a decrease in March compared to February are: Wood Products; and Petroleum & Coal Products.