U.S. Manufacturing Activity Contracts In March After Two Months Of Growth
(RTTNews) - Activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion, according to a report released by the Institute for Supply Management on Tuesday.
The ISM said its manufacturing PMI dipped to 49.0 in March from 50.3 in February, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 49.5.
The modest decrease by the headline index partly reflected an accelerated contraction by new orders, as the new orders index slid to 45.2 in March from 48.6 in February.
"Orders continue to slow, as discussions about who will pay for potential tariff costs are the prime topic of negotiations between buyers and sellers," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
The report also showed a downturn by production, with the production index falling to 48.3 in March from 50.7 in February.
The employment index also declined to 44.7 in March from 47.6 in February, suggesting employment in the manufacturing sector decreased for the second consecutive month.
Meanwhile, the ISM said the prices index jumped to 69.4 in March from 62.4 in February, indicating a notable acceleration by the pace of price growth.
The Institute for Supply Management is scheduled to release a separate report on U.S. service sector activity in the month of March on Thursday.
The services PMI is currently expected to edge down to 53.0 in March after inching up to 53.5 in February, but a reading above 50 would still indicate growth.
U.S. Construction Spending Unexpectedly Edges Lower In July
U.S. Manufacturing Index Inches Up In Line With Estimates In August
U.S. Consumer Sentiment Deteriorates Slightly More Than Initially Estimated In August
Chicago Business Barometer Slumps Much More Than Expected In August
U.S. Consumer Prices Increase In Line With Estimates In July
U.S. PCE Price Index Increased In Line With Estimates In July
U.S. Pending Home Sales Fall More Than Expected In July
