The report provides an overall measure of manufacturing performance, as well as its primary components, including new orders, production, employment, inventories, customer inventories, prices and backlogs.
A recent report from the Institute for Supply Management has revealed that economic activity in the US manufacturing sector has contracted for five months straight. The Manufacturing PMI registered a reading of 46.3% in March, 1.4 percentage points lower than February’s 47.7%. This indicates that the manufacturing sector is not expanding, as readings above 50% are used to denote growth.
The ISM noted that this is the lowest level since May 2020 when it registered 43.5%. Meanwhile, the employment index dropped to a reading of 46.9%, which is its lowest since measurements began in mid-2021. Of the six major manufacturing sectors, only machinery and transportation equipment were reported to have expanded in March.
Timothy Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee, noted that panelists’ companies are approaching parity in terms of labor management sentiment but that the turnover rates remain at their lowest levels since measurements began. The Manufacturing PMI report provides a comprehensive view of the manufacturing sector, with indicators such as new orders