The overall economy grew for the fifty-eighth straight time, while the manufacturing sector expanded for the tenth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index grew to 53.7 in March from 53.2 in February.
Economists polled by Thomson Reuters predicted the index would rise to 54.0.
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 decreased to 59.0 from 60.0. The employment index fell to 51.1 from 52.3.
The production index gained to 55.9 from 48.2, the new orders index rose to 55.1 from 54.5; the supplier deliveries index fell to 54.0 from 58.5; the export orders index climbed to 55.5 from 53.5; and the imports index grew to 54.5 from 53.5.
The inventories index held at 52.5; the customers' inventories index slumped to 42.0 from 46.5; and backlog of orders gained to 57.5 from 52.0.
Respondents' comments included:
"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)
