ISM: U.S. Manufacturing Grows in March, PMI at 52.7


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- A key U.S. purchasing managers index released on Wednesday 
(4/1) showed that manufacturing activity in March expanded for the third month 
in a row.

   The Manufacturing Purchasing Managers Index of the Institute for Supply 
Management (ISM) stood at 52.7 in March, in line with expectations of 52.4 -- 
the figure recorded in February and just below the three-and-a-half year high 
52.6 in January.

   The three-month increase followed ten months of contraction. While 
manufacturing expanded at a slightly higher rate in March, it marked the only 
fourth reading above 50 points in 40 months.

   The rise in U.S. manufacturing activity was attributed, in part, to growth 
in new orders and production. The new orders index edged lower from February, 
but stayed in expansion territory for the third month in a row. The production 
index rose 1.6 points from last month, indicating faster growing production, 
and expansion for the fifth consecutive month.

   "In March, U.S. manufacturing activity remained in expansion territory, 
growing at a slightly faster pace than the month before. Of the five subindexes 
that make up the PMI, the New Orders Index indicated slower growth compared to 
the previous month, the Production Index grew at a faster rate, and the 
Employment and Inventories indexes remained in contraction." said Susan Spence, 
chair of the ISM Manufacturing Business Survey Committee.

   The report highlighted respondents' comments about the impact of tariffs and 
the war in the Middle East. "This month also marks the first report with 
panelists citing the Iran war as a new impact to their business, along with 
ongoing uncertainty with U.S. economic policy. In March, 64 percent of comments 
overall were negative. Among the negative comments, about 20 percent cited 
tariffs and about 40 percent the war in the Middle East," Spence added.

   Respondents also noted a rapid increase in input costs. The Prices Index, in 
expansion territory for the last 18 months, jumped 7.8 points from February to 
78.3. February's reading was already the highest since June 2022.

   The U.S. dollar index ticked higher following the release of the data, but 
remained down 0.48 points on the day near 99.27 against a basket of foreign 
currencies.




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