The Institute for Supply Management announced today that economic activity in the US manufacturing sector grew in March, but at a slower rate than February, according to its “Manufacturing ISM Report on Business.”
“The March Manufacturing PMI registered 57.1%, a decrease of 1.5 percentage points from the February reading of 58.6%,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee. “This figure indicates expansion in the overall economy for the 22nd month in a row after a contraction in April and May 2020.”
However, Fiore noted the reading for the March Manufacturing PMI was the lowest since September 2020.
In addition, the US manufacturing sector remains in a demand-driven, supply chain-constrained environment.
“In March, progress was made to solve the labor shortage problems at all tiers of the supply chain, which will result in improved factory throughput and supplier deliveries,” Fiore said. “Panelists reported lower rates of quits and early retirements compared to previous months, as well as improving internal and supplier labor positions.”
Data for the Manufacturing PMI report is taken from a survey of manufacturing supply executives.