Manufacturing output in the U.S. continued to contract in March according to a pair of industry surveys released this week.
U.S. manufacturing activity fell to a three-year low, the Institute for Supply Management (ISM) said. This was the fifth month in a row of contraction in manufacturing.
The manufacturing sector is considered a bellwether for the broader economy. ISM said the March reading was low enough to suggest a contraction in the overall economy, the fourth month of contraction. The data comes from a survey of purchasing managers and executives at manufacturing businesses that are thought to have broad insights into business conditions.
ISM said its Purchasing Manager Index (PMI) score fell to 46.3 percent, 1.4 percentage points lower than the 47.7 percent recorded in February. This is the lowest level since May 2020, when it registered 43.5 percent.
ISM also showed indexes for new orders, employment, and prices, which are contracting as well. The New Orders index fell to 44.3 percent, down 2.7 points from the month prior, while employment fell 2.2 points to 46.9 percent, and prices fell 2.1 points to 49.2 percent.
Additionally, while still contracting, the S&P Global manufacturing score slightly improved and notched up 1.9 points to 49.2 percent in March from 47.3 percent in February.
S&P Global said their March data indicated a “marginal deterioration” in the U.S. manufacturing sector, with the decline coming from a further drop in demand while there was only a slight rise in output.
Despite an increase in output, client demand remained muted, and new orders fell more in the first quarter, the report noted.
Jacob Bliss is a reporter for Breitbart News. Write to him at jbliss@breitbart.com or follow him on Twitter @JacobMBliss.
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