United States manufacturing activity increased in March, but supplier deliveries slowed amid the Iran war.
The Institute for Supply Management (ISM) Manufacturing PMI was 52.7% in March, rising 0.3 percentage points from February.
“In March, U.S. manufacturing activity remained in expansion territory, growing at a slightly faster pace than the month before,” said ISM manufacturing business survey committee chair Susan Spence.
“This month also marks the first report with panelists citing the Iran war as a new impact to their business, along with ongoing uncertainty with U.S. economic policy, despite the recent Supreme Court ruling striking down International Emergency Economic Powers Act (IEEPA) tariffs.”
The supplier deliveries index slowed for a fourth consecutive month. The index was up 3.8 percentage points to 58.9%, with readings above 50% indicating slower deliveries.
ISM’s inventories index fell by 1.7 percentage points to 47.1%, meanwhile. The production index grew for a fifth consecutive month, increasing 1.6 percentage points to 53.5%.
Prices also rose, with the prices index climbing 7.8 percentage points to 78.3 . This index has surged 19.3 percentage points in the last two months, and is now at its highest point since June 2022.
The new export orders index dipped 0.4 percentage points to return to contraction territory at 49.9%. The Imports index shed 2.3 percentage points to 52.6%.
According to Spence, 16% of the manufacturing sector’s gross domestic product contracted in March, less than the 21% seen in February. Industries reporting growth included printing, primary metals, and transportation equipment, while plastics and rubber, furniture, and food and beverages contracted.
