ISM Manufacturing Index Inched Down to 46.3% in March

Tempe, AZ, April 3, 2023-The March Manufacturing Purchasing Managers’ Index (PMI) registered 46.3%, 1.4 percentage points lower than the 47.7% recorded in February. Regarding the overall economy, this figure indicates a fourth month of contraction after a 30-month period of expansion. 

The Manufacturing PMI is at its lowest level since May 2020, when it registered 43.5%. 

The New Orders Index remained in contraction territory at 44.3%, 2.7 percentage points lower than the figure of 47% recorded in February. 

The Production Index reading of 47.8% is a 0.5-percentage point increase compared to February’s figure of 47.3%. 

The Prices Index registered 49.2%, down 2.1 percentage points compared to the February figure of 51.3%. 

The Backlog of Orders Index registered 43.9%, 1.2 percentage points lower than the February reading of 45.1%. 

The Employment Index continued in contraction territory, registering 46.9%, down 2.2 percentage points from February’s reading of 49.1%. 

The Supplier Deliveries Index figure of 44.8% is 0.4 percentage point lower than the 45.2% recorded in February; this is the index’s lowest reading since March 2009 (43.2%).

The Inventories Index dropped into contraction at 47.5%, 2.6 percentage points lower than the February reading of 50.1%. 

The New Export Orders Index reading of 47.6% is 2.3 percentage points lower than February’s figure of 49.9%. 

The Imports Index continued in contraction territory at 47.9%, 2 percentage points below the 49.9% reported in February.

Of the six biggest manufacturing industries, two-petroleum & coal products and machinery-registered growth in March.

The six manufacturing industries that reported growth in March-in the following order-are printing & related support activities; miscellaneous manufacturing; fabricated metal products; petroleum & coal products; primary metals; and machinery. The 12 industries reporting contraction in March, in the following order, are furniture & related products; nonmetallic mineral products; textile mills; plastics & rubber products; paper products; wood products; food, beverage & tobacco products; apparel, leather & allied products; chemical products; computer & electronic products; electrical equipment, appliances & components; and transportation equipment.