Purchasing Managers' Index Up 2.3 Percentage Points in March

Tempe, AZ, April 1, 2016—The March PMI registered 51.8%, an increase of 2.3 percentage points from the February reading of 49.5%, according to the latest Manufacturing ISM Report On Business.

The New Orders Index registered 58.3%, an increase of 6.8 percentage points from the February reading of 51.5%.

The Production Index registered 55.3%, 2.5 percentage points higher than the February reading of 52.8%.

The Employment Index registered 48.1%, 0.4 percentage point below the February reading of 48.5%.

Inventories of raw materials registered 47%, an increase of 2 percentage points above the February reading of 45%.

The Prices Index registered 51.5%, an increase of 13 percentage points above the February reading of 38.5%, indicating higher raw materials prices for the first time since October 2014.

Manufacturing registered growth in March for the first time since August 2015, as 12 of our 18 industries reported sector growth, and 13 of our 18 industries reported an increase in new orders in March.

Of the 18 manufacturing industries, 12 are reporting growth in March in the following order: Printing & Related Support Activities; Furniture & Related Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Machinery; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Chemical Products; Paper Products; Primary Metals; and Computer & Electronic Products.

The five industries reporting contraction in March are Apparel, Leather & Allied Products; Textile Mills; Electrical Equipment, Appliances & Components; Transportation Equipment; and Petroleum & Coal Products.