Input Stories

In March, U.S. manufacturing activity stalled after strong growth in February. The S&P Global U.S. Manufacturing PMI fell to 50.2 in March from 52.7 in February, remaining above the 50.0 no-change score. Production declined for the first time since December, even as new orders rose modestly and exports stabilized. Confidence softened amid uncertainty over federal policies, specifically tariff implementation.

After February’s fastest rise in production in three years, March’s fall in production is due partially to fewer instances of front-running output before tariff implementation. Employment numbers were also weighed down by future uncertainty, remaining unchanged after four months of growth. Input costs continued to rise, reaching the highest level in two-and-a-half years as suppliers start adjusting prices in response to tariffs. In response, output charges rose for the fourth consecutive month to a 25-month high.

New orders growth was modest, and new export orders have increased from clients in Asia, Canada and Europe. Backlogs declined at the fastest rate since December. Firms signaled a preference to utilize existing inputs wherever possible, recording a drop in stocks of inputs.