March ISM Index at 36.3, Up From 35.8 in February

The overall economy failed to grow for the sixth straight month while the manufacturing sector contracted for the 14th month in a row, the Institute for Supply Management reported yesterday.

According to ISM’s monthly report on business, the ISM index gained to 36.3 in March from 35.8 in February.

Economists polled by Thomson Reuters predicted the index would rise to 36.0.

“The rapid decline in manufacturing appears to have moderated somewhat, as the [purchasing managers’ index] remains in the mid-30s for a third consecutive month,” said Norbert J. Ore, chair of ISM’s manufacturing business survey committee.

“While the PMI is slightly higher in March, the new orders index offers greater encouragement, as it rose above the 40% mark for the first time in seven months. The production index showed no benefit as yet from the improvement in new orders, as it continued to decline at a rate similar to March,” he said. “The rate of decline in the employment index slowed slightly, and the same held true for the prices index. A special question was asked with regard to the economic stimulus package, and five of the 18 manufacturing industries expect to derive some benefit from the stimulus.”

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