Manufacturing PMI Increased in March
Manufacturing expanded again for a third consecutive month (S&P Global).
What’s going on: “The Manufacturing PMI® registered 52.7 percent in March, a 0.3-percentage point increase compared to the reading of 52.4 percent in February. The overall economy continued in expansion for the 17th month in a row.”
- Reuters-polled economists had predicted a March PMI of 52.5 (Economic Times).
The details: New orders increased for the third consecutive month after four declining readings in a row, coming in at 53.5%.
- That’s down 2.3 percentage points from February’s 55.8%.
However … Prices paid for manufacturing inputs jumped to 78.3% from 70.5% the previous month.
- Also, imports declined 2.3 percentage points, for a reading of 52.6%, a decrease from February’s 54.9%.
The NAM says: “Although steady increases in demand and activity are positive news, several respondents to this month’s ISM PMI survey noted how the Middle East conflicts are creating further upward pressure on prices and denting consumer confidence,” said NAM Chief Economist Victoria Bloom.
- “As a result, the Prices Index jumped 7.8 percentage points to its highest reading since June 2022 when inflation was at its peak of nearly 9%. As the pricing and supply pressure flows through, it will likely dampen activity in the months to come.”