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U.S. Economic Activity, Overall Economy Grow in March

Economic activity in the U.S. manufacturing sector expanded in March for the fourth consecutive month, and the overall economy grew for the 46th consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business. The report was issued this week by Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee, Tempe, Ariz., USA.

The PMI registered 51.3%, a decrease of 2.9 percentage points from February's reading of 54.2%, indicating expansion in manufacturing for the fourth consecutive month, but at a slower rate. Both the New Orders and Production Indexes reflected growth in March compared with February, although at slower rates, registering 51.4% and 52.2%, respectively. The Employment Index registered 54.2%, an increase of 1.6 percentage points compared with February's reading of 52.6%. The Prices Index decreased 7 percentage points to 54.5, and the list of commodities up in price reflected far fewer items than in February. In addition, the Backlog of Orders, Exports, and Imports Indexes all grew in March.

Of the 18 manufacturing industries, 14 reported growth in March in the following order: Wood Products; Furniture & Related Products; Plastics & Rubber Products; Electrical Equipment, Appliances and Components; Fabricated Metal Products; Paper Products; Apparel, Leather, and Allied Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Computer and Electronic Products; Transportation Equipment; Printing and Related Support Activities; Primary Metals; and Food, Beverage, and Tobacco Products. The three industries reporting contraction in March are: Petroleum and Coal Products; Chemical Products; and Machinery.

The 12 industries reporting growth in new orders in March (in order) are: Wood Products; Furniture and Related Products; Nonmetallic Mineral Products; Apparel, Leather, and Allied Products; Fabricated Metal Products; Miscellaneous Manufacturing; Transportation Equipment; Plastics and Rubber Products; Machinery; Paper Products; Electrical Equipment, Appliances and Components; and Food, Beverage, and Tobacco Products. The two industries reporting a decrease in new orders during March are: Petroleum and Coal Products; and Primary Metals.

The 13 industries reporting growth in production during the month of March (in order) are: Wood Products; Paper Products; Nonmetallic Mineral Products; Plastics and Rubber Products; Computer and Electronic Products; Apparel, Leather, and Allied Products; Furniture and Related Products; Electrical Equipment, Appliances and Components; Transportation Equipment; Primary Metals; Fabricated Metal Products; Miscellaneous Manufacturing; and Food, Beverage, and Tobacco Products. The two industries reporting a decrease in production in March are: Machinery; and Chemical Products.

Of the 18 manufacturing industries, 10 reported growth in employment in March in the following order: Plastics and Rubber Products; Furniture and Related Products; Wood Products; Printing and Related Support Activities; Electrical Equipment, Appliances, and Components; Miscellaneous Manufacturing; Fabricated Metal Products; Computer and Electronic Products; Food, Beverage, and Tobacco Products; and Machinery. The three industries reporting a decrease in employment in March are: Transportation Equipment; Chemical Products; and Apparel, Leather, and Allied Products.

The seven industries reporting higher inventories in March (in order) are: Plastics and Rubber Products; Wood Products; Electrical Equipment, Appliances, and Components; Petroleum and Coal Products; Paper Products; Transportation Equipment; and Fabricated Metal Products. The seven industries reporting decreases in inventories in March (in order) are: Primary Metals; Miscellaneous Manufacturing; Computer and Electronic Products; Machinery; Food, Beverage, and Tobacco Products; Chemical Products; and Apparel, Leather, and Allied Products.

Of the 18 manufacturing industries, 10 reported paying increased prices during the month of March in the following order: Textile Mills; Petroleum and Coal Products; Plastics and Rubber Products; Wood Products; Furniture and Related Products; Paper Products; Printing and Related Support Activities; Miscellaneous Manufacturing; Chemical Products; and Electrical Equipment, Appliances, and Components. The six industries reporting paying lower prices during March (in order) are: Nonmetallic Mineral Products; Computer and Electronic Products; Machinery; Transportation Equipment; Fabricated Metal Products; and Food, Beverage, and Tobacco Products.

The eight industries reporting increased order backlogs in March (in order) are: Apparel, Leather, and Allied Products; Nonmetallic Mineral Products; Primary Metals; Furniture and Related Products; Fabricated Metal Products; Food, Beverage, and Tobacco Products; Electrical Equipment, Appliances and Components; and Machinery. The seven industries reporting decreases in order backlogs during March (in order) are: Plastics and Rubber Products; Transportation Equipment; Paper Products; Computer and Electronic Products; Miscellaneous Manufacturing; Chemical Products; and Petroleum and Coal Products.