The overall economy grew for the seventieth straight time, while the manufacturing sector expanded for the twenty-seventh consecutive month, the Institute for Supply Management reported Wednesday.
According to the ISM's monthly report on business, the ISM index slid to 51.5 in March from 52.9 in February.
Economists polled by Thomson Reuters predicted the index would slip to 52.5.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index rose to 39.0 from 35.0. The employment index slid to 50.0 from 51.4.
The production index climbed to 53.8 from 53.7, the new orders index fell to 51.8 from 52.5; the supplier deliveries index dropped to 50.5 from 54.3; the export orders index decreased to 47.5 from 48.5; and the imports index slipped to 52.5 from 54.0.
The inventories index decreased to 51.5 from 52.5; the customers' inventories index fell to 45.5 from 46.5; and backlog of orders slid to 49.5 from 51.5.
Respondents' comments included:
"Falling energies have helped on the cost side while sales are getting a boost through improvements in consumer disposable income." (Food, Beverage & Tobacco Products)
"Our business is still strong and on projection. Dollar strength is challenging for our international business." (Fabricated Metal Products)
"Business is still extremely strong." (Transportation Equipment)
"Oil prices impacting drilling and project activity. Pursuing cost reductions from suppliers for a wide variety of goods and services." (Petroleum & Coal Products)
"Business really starting to slow down. Oil pricing is having a major effect on energy markets." (Computer & Electronic Products)
"Steady Q1 demand but somewhat interrupted by weather." (Primary Metals)
"Operating costs are higher due to increases in healthcare premiums." (Miscellaneous Manufacturing)
"March business is improving over Jan-Feb, thawing out of this crazy winter." (Paper Products)
"Dealing with ongoing delivery issues associated with congestion at the U.S. West Coast and Vancouver ports." (Machinery)
"Congestion at the West Coast ports delaying incoming products." (Textile Mills)
