According to the nation’s supply executives in the latest Manufacturing ISM Report on Business, economic activity in the manufacturing sector expanded in March for the first time in the last six months, while the overall economy grew for the 82nd consecutive month.
Of the 18 manufacturing industries, 12 reported growth in March in the following order: printing and related support activities; furniture and related products; nonmetallic mineral products; miscellaneous manufacturing; machinery; plastics and rubber products; food, beverage and tobacco products; fabricated metal products; chemical products; paper products; primary metals; and computer and electronic products. The five industries reporting contraction in march are: apparel, leather and allied products; textile mills; electrical equipment, appliances and components; transportation equipment; and petroleum and coal products.
The report was issued by Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee. Holcomb said, “The March PMI registered 51.8%, an increase of 2.3 percentage points from the February reading of 49.5%. The New Orders Index registered 58.3%, an increase of 6.8 percentage points from the February reading of 51.5%. The Production Index registered 55.3%, 2.5 percentage points higher than the February reading of 52.8%. The Employment Index registered 48.1%, 0.4 percentage point below the February reading of 48.5%. Inventories of raw materials registered 47%, an increase of two percentage points above the February reading of 45%. The Prices Index registered 51.5%, an increase of 13 percentage points above the February reading of 38.5%, indicating higher raw materials prices for the first time since October 2014. Manufacturing registered growth in March for the first time since August 2015, as 12 of our 18 industries reported sector growth, and 13 of our 18 industries reported an increase in new orders in March.”
Noteworthy comments made by survey respondents included:
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