ISM: Manufacturing Contracts For Fifth Straight Month
tory at 44.3 percent, 2.7 percentage points lower than the figure of 47 percent recorded in February. The Production Index reading of 47.8 percent is a 0.5-percentage point in- crease compared to February's figure of 47.3 percent. The Prices Index registered 49.2 percent, down 2.1 percentage points compared to the February figure of 51.3 percent. “The Backlog of Orders Index registered 43.9 percent, 1.2 percentage points lower than the February reading of 45.1 percent. The Employment Index continued in con- traction territory, registering 46.9 percent, down 2.2 per- centage points from February's reading of 49.1 percent. The Supplier Deliveries Index figure of 44.8 percent is 0.4 percentage point lower than the 45.2 percent recorded in February; this is the index's lowest reading since March 2009 (43.2 percent). “The Inventories Index dropped into contraction at 47.5 percent, 2.6 percentage points lower than the February reading of 50.1 percent. The New Export Orders Index
Economic activity in the manufacturing sector contract- ed in March for the fifth consecutive month following a 28-month period of growth, say the nation's supply ex- ecutives in the latest Manufacturing ISM Report On Busi- ness. The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Manage- ment (ISM) Manufacturing Business Survey Committee: “The March Manufacturing PMI registered 46.3 percent, 1.4 percentage points lower than the 47.7 percent record- ed in February. Regarding the overall economy, this figure indicates a fourth month of contraction after a 30-month period of expansion. The Manufacturing PMIis at its lowest level since May 2020, when it registered 43.5 percent. “The New Orders Index remained in contraction terri-
reading of 47.6 percent is 2.3 percentage points lower than February's figure of 49.9 percent. The Imports Index continued in contraction territory at 47.9 percent, 2 per- centage points below the 49.9 percent re- ported in February. “The U.S. manufacturing sector contract- ed again, with the Manufacturing PMI® de- clining compared to the previous month. With Business Survey Committee panelists reporting softening new order rates over the previous 10 months, the March composite index reading reflects companies continu- ing to slow outputs to better match demand for the first half of 2023 and prepare for growth in the late summer/early fall period. Demand eased, with the (1) New Orders In- dex contracting at a faster rate, (2) New Ex- port Orders Index still below 50 percent and declining, (3) Customers' Inventories Index entering the high end of a 'just right' level, a negative for future production and (4) Back- log of Orders Index sagging again and con- tinuing in contraction. “The Employment Index continued in contraction after two months of marginal ex- pansion, and the Production Index logged a fourth month in contraction territory, though at a slightly lower rate. Panelists' comments now indicate equal levels of activity toward expanding and contracting head counts at their companies, amid mixed sentiment about the return of growth early in the sec- ond half of the year. Inputs — defined as supplier deliveries, inventories, prices and imports — continue to accommodate future demand growth. The Supplier Deliveries Index indicated faster deliveries, and the CONTINUED ON PAGE 40
6
www.boardconvertingnews.com
April 10, 2023
Made with FlippingBook interactive PDF creator