Manufacturing Fails To Grow For Second Month

Tempe, AZ, April 1, 2008--Economic activity in the manufacturing sector increased slightly in March, while the overall economy grew for the 77th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The index rose to 48.6 from 48.3 in February. Economists had forecast the index to drop to 47.5.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"The manufacturing sector failed to grow in March as the PMI fell below 50 percent for the second consecutive month,” said ISM Survey Chair Norbert Ore.

“This completes the weakest quarterly performance for the U.S. economy since Q2 of 2003. Manufacturers' order backlogs continue to erode as the New Orders Index failed to grow for the fourth consecutive month.”

Cost pressures are also continuing, even though demand is slowing.