Economic activity in the manufacturing sector contracted in March, and the overall economy grew for the 131st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business released Wednesday.
Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee, said: “The coronavirus pandemic and shocks in global energy markets have impacted all manufacturing sectors.”
The March PMI registered 49.1%, down 1 percentage point from the February reading of 50.1%. Economists were expecting the PMI to come in at 44%.
The New Orders Index registered 42.2%, a decrease of 7.6 percentage points from the February reading of 49.8%. The Production Index registered 47.7%, down 2.6 percentage points compared to the February reading of 50.3%. The Backlog of Orders Index registered 45.9%, a decrease of 4.4 percentage points compared to the February reading of 50.3%. The Employment Index registered 43.8%, a decrease of 3.1 percentage points from the February reading of 46.9%.
| MANUFACTURING AT A GLANCE March 2020 | ||||||
| Index | Series Index Mar | Series Index Feb | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| PMI® | 49.1 | 50.1 | -1.0 | Contracting | From Growing | 1 |
| New Orders | 42.2 | 49.8 | -7.6 | Contracting | Faster | 2 |
| Production | 47.7 | 50.3 | -2.6 | Contracting | From Growing | 1 |
| Employment | 43.8 | 46.9 | -3.1 | Contracting | Faster | 8 |
| Supplier Deliveries | 65.0 | 57.3 | +7.7 | Slowing | Faster | 5 |
| Inventories | 46.9 | 46.5 | +0.4 | Contracting | Slower | 10 |
| Customers’ Inventories | 43.4 | 41.8 | +1.6 | Too Low | Slower | 42 |
| Prices | 37.4 | 45.9 | -8.5 | Decreasing | Faster | 2 |
| Backlog of Orders | 45.9 | 50.3 | -4.4 | Contracting | From Growing | 1 |
| New Export Orders | 46.6 | 51.2 | -4.6 | Contracting | From Growing | 1 |
| Imports | 42.1 | 42.6 | -0.5 | Contracting | Faster | 2 |
| OVERALL ECONOMY | Growing | Slower | 131 | |||
| Manufacturing Sector | Contracting | From Growing | 1 |
