Purchasing Managers' Index Declined to 49% in March

Tempe, AZ, April 1, 2025-The Manufacturing Purchasing Managers' Index (PMI) registered 49% in March, 1.3 percentage points lower compared to the 50.3% recorded in February, say the nation's supply executives in the latest Manufacturing ISM Report On Business. 

The overall economy continued in expansion for the 59th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index contracted for the second month in a row following a three-month period of expansion; the figure of 45.2% is 3.4 percentage points lower than the 48.6% recorded in February. 

The March reading of the Production Index (48.3%) is 2.4 percentage points lower than February’s figure of 50.7%. The index dropped back into contraction after two months of expansion, with eight months of contraction before that. 

The Prices Index surged further into expansion (or ‘increasing’) territory, registering 69.4%, up seven percentage points compared to the reading of 62.4% in February.

The Backlog of Orders Index registered 44.5%, down 2.3 percentage points compared to the 46.8% recorded in February. The Employment Index registered 44.7%, down 2.9 percentage points from February’s figure of 47.6%.

The Supplier Deliveries Index indicated a continued slowing of deliveries (though at a slightly slower rate of change), registering 53.5%, one percentage point lower than the 54.5% recorded in February. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 53.4%, up 3.5 percentage points compared to February’s reading of 49.9%. The index returned to expansion after six months of contraction.

The New Export Orders Index reading of 49.6% is 1.8 percentage points lower than the reading of 51.4% registered in February. 

The Imports Index continued in expansion in March, though just barely, registering 50.1%, 2.5 percentage points lower than February’s reading of 52.6%.

The nine manufacturing industries reporting growth in March-listed in order-are textile mills; petroleum & coal products; fabricated metal products; primary metals; computer & electronic products; nonmetallic mineral products; transportation equipment; electrical equipment, appliances & components; and miscellaneous manufacturing. The seven industries reporting contraction in March, in order, are wood products; paper products; plastics & rubber products; furniture & related products; chemical products; food, beverage & tobacco products; and machinery.