Input Stories

In March, the global manufacturing sector expanded at a slower pace, falling to 50.3 from 50.6 in February. Four of the five PMI components had either a negative or less positive impact on the overall level, as output and new orders grew at a slower rate, while employment and stocks of purchases fell slightly. On the other hand, supplier delivery times continued to decline, providing a somewhat stronger positive contribution.

India, Greece, Australia and Brazil had the highest PMI readings in March, while the Eurozone and China’s PMI also improved. On the other hand, the contraction in Japan and the U.K. deepened. The lackluster conditions, driven by rising concerns about the geopolitical situation, high costs and potential disruption to global trade flows, led confidence to fall to a three-month low. Output expanded for the third consecutive month, driven by intermediate goods and consumer goods, but at the weakest pace during that period. Meanwhile, investment goods fell for the ninth time in the past 10 months. The lackluster conditions for output were mirrored for new orders, with the rate of new order growth being meager. On the other hand, international trade volumes stabilized, with new exports exhibiting a minor increase.

In March, manufacturing employment declined for the eighth consecutive month but at a slower rate than the prior month. Employment losses in the Eurozone and the U.K. were offset only partially by growth in China and Japan, while U.S. staffing levels stayed the same. Input costs rose at nearly as high of a rate as February, while the rate of increase in selling prices was the highest since June 2024.