U.S. PMI 49.1%Christian Fernsby ▼ | April 2, 2020
U.S. 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.
U.S. manufacturing U.S. economic activity in the manufacturing sector contracted in March
Topics: U.S. PMI
The New Orders Index registered 42.2 percent, a decrease of 7.6 percentage points from the February reading of 49.8 percent.
The Production Index registered 47.7 percent, down 2.6 percentage points compared to the February reading of 50.3 percent.
The Backlog of Orders Index registered 45.9 percent, a decrease of 4.4 percentage points compared to the February reading of 50.3 percent.
The Employment Index registered 43.8 percent, a decrease of 3.1 percentage points from the February reading of 46.9 percent.
The Supplier Deliveries Index registered 65 percent, up 7.7 percentage points from the February reading of 57.3 percent, and limited the decrease in the composite PMI.
The Supplier Deliveries Index is one of five equally weighted subindexes that directly factor into the PMI, along with New Orders, Production, Employment and Inventories.
Supplier Deliveries is the only ISM Report On Business index that is inversed — a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.
However, the high index reading in March was primarily a product of coronavirus-related supply problems.
The Inventories Index registered 46.9 percent, 0.4 percentage point higher than the February reading of 46.5 percent.
The Prices Index registered 37.4 percent, down 8.5 percentage points compared to the February reading of 45.9 percent.
The New Export Orders Index registered 46.6 percent, a decrease of 4.6 percentage points compared to the February reading of 51.2 percent.
The Imports Index registered 42.1 percent, a 0.5-percentage point decrease from the February reading of 42.6 percent.
Of the 18 manufacturing industries, the 10 that reported growth in March — listed in order — are: Printing & Related Support Activities; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Wood Products; Paper Products; Chemical Products; Computer & Electronic Products; Primary Metals; Miscellaneous Manufacturing; and Plastics & Rubber Products.
The six industries reporting contraction in March, in order, are: Petroleum & Coal Products; Textile Mills; Transportation Equipment; Furniture & Related Products; Fabricated Metal Products; and Machinery. ■