ISM Manufacturing Index Rose to 53.7% in March, But Missed Expectations Amid Strong New Orders, Production
Tweet
Share
E-mail
Economic activity in the manufacturing sector expanded in March for the 10th consecutive month, and the overall economy grew for the 58th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "The March PMI registered 53.7 percent, an increase of 0.5 percentage point from February's reading of 53.2 percent, indicating expansion in manufacturing for the 10th consecutive month. (Consensus was looking for a reading of 54.0.) The New Orders Index registered 55.1 percent, an increase of 0.6 percentage point from February's reading of 54.5 percent. The Production Index registered 55.9 percent, a substantial increase of 7.7 percentage points compared to February's reading of 48.2 percent. Employment grew for the ninth consecutive month, but at a lower rate by 1.2 percentage points, registering 51.1 percent compared to February's reading of 52.3 percent. Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country."
Of the 18 manufacturing industries, 14 are reporting growth in March in the following order: Petroleum & Coal Products; Transportation Equipment; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Plastics & Rubber Products; Fabricated Metal Products; Machinery; Textile Mills; Computer & Electronic Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Chemical Products; and Primary Metals. The four industries reporting contraction in March are: Apparel, Leather & Allied Products; Wood Products; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing.
WHAT RESPONDENTS ARE SAYING ...
-- "Seeing improvement in the overall economy. Hearing strong bookings in residential contractor and home repair work." (Paper Products)
-- "First quarter business still strong." (Fabricated Metal Products)
-- "Business beginning to heat-up, along with the weather." (Petroleum & Coal Products)
-- "Business is good and we are optimistic that orders will continue to come in at a decent pace." (Transportation Equipment)
-- "Year starting off very good. Outlook very bright for 2014." (Computer & Electronic Products)
-- "Export orders are picking up — volume is improving although pricing, and thus profitability, are still challenged. Domestic business seems to be holding steady despite earlier predicted declines." (Chemical Products)
-- "Short supply of hardwood lumber continues to challenge sales' ability to maximize volume targets. Demand is sound." (Wood Products)
-- "Weather has created major delays on inbound materials and outbound sales. We need spring." (Food, Beverage & Tobacco Products)
-- "Economy is looking positive and commodities are stable." (Machinery)
-- "Business continues to improve." (Furniture & Related Products)
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "The March PMI registered 53.7 percent, an increase of 0.5 percentage point from February's reading of 53.2 percent, indicating expansion in manufacturing for the 10th consecutive month. (Consensus was looking for a reading of 54.0.) The New Orders Index registered 55.1 percent, an increase of 0.6 percentage point from February's reading of 54.5 percent. The Production Index registered 55.9 percent, a substantial increase of 7.7 percentage points compared to February's reading of 48.2 percent. Employment grew for the ninth consecutive month, but at a lower rate by 1.2 percentage points, registering 51.1 percent compared to February's reading of 52.3 percent. Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country."
Of the 18 manufacturing industries, 14 are reporting growth in March in the following order: Petroleum & Coal Products; Transportation Equipment; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Plastics & Rubber Products; Fabricated Metal Products; Machinery; Textile Mills; Computer & Electronic Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Chemical Products; and Primary Metals. The four industries reporting contraction in March are: Apparel, Leather & Allied Products; Wood Products; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing.
WHAT RESPONDENTS ARE SAYING ...
-- "Seeing improvement in the overall economy. Hearing strong bookings in residential contractor and home repair work." (Paper Products)
-- "First quarter business still strong." (Fabricated Metal Products)
-- "Business beginning to heat-up, along with the weather." (Petroleum & Coal Products)
-- "Business is good and we are optimistic that orders will continue to come in at a decent pace." (Transportation Equipment)
-- "Year starting off very good. Outlook very bright for 2014." (Computer & Electronic Products)
-- "Export orders are picking up — volume is improving although pricing, and thus profitability, are still challenged. Domestic business seems to be holding steady despite earlier predicted declines." (Chemical Products)
-- "Short supply of hardwood lumber continues to challenge sales' ability to maximize volume targets. Demand is sound." (Wood Products)
-- "Weather has created major delays on inbound materials and outbound sales. We need spring." (Food, Beverage & Tobacco Products)
-- "Economy is looking positive and commodities are stable." (Machinery)
-- "Business continues to improve." (Furniture & Related Products)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Natural Gas Inventory 50 bcf vs 52 bcf Expected
- US economic activity expanded slightly in recent weeks, Fed says
- Crude Inventory Rose 2.7 Million Barrels Last Week, Says EIA
Create E-mail Alert Related Categories
ETFs, Economic DataRelated Entities
ISM ManufacturingSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
