Tempe, AZ, April 1--The Institute for Supply Management’s index measuring manufacturing activity registered 55.2 in March, down from February's 55.3 reading.
The reading indicates that the manufacturing sector grew for the 22nd consecutive month in March, but its growth was slightly slower that the pace set in February.
The analysts had forecast a level of 55.0.
Although the index was down, the fact that it remained above 50 indicated that the industrial sector continued to grow last month, but at a slower pace. A reading of 50 or above in the index means the manufacturing sector is expanding, while a figure below 50 represents a contraction.
Norbert J. Ore, head of the group's survey committee, said the March number was boosted by strong readings in new orders and inventories.
"The manufacturing sector maintained its strength in March, finishing the first quarter in a relatively strong position," Ore said in a statement accompanying the report.
He said, however, a strong rise in prices — include those for petroleum products — "continues to present a problem for manufacturers."
