Manufacturing contracts in March, as tariff impact weighs on growth, notes ISM

Coming off of two consecutive months of growth, manufacturing activity in March did not keep the momentum going, according to the new edition of the Manufacturing Report on Business, which was issued today by the Institute for Supply Management (ISM).

The report’s benchmark reading, the PMI, came in at 49 (a reading of 50 or higher indicates growth), down 1.3% from February’s 50.3 reading. January’s PMI, at 50.9, represented the first growth month, after a 26-month run of contraction.

The March PMI reading topped the 12-month average, of 48.5 by 0.5%. January’s 50.9 and October’s 46.9 mark the respective high and low readings for that period.

ISM reported that nine manufacturing sectors saw growth in March, including: 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. Sectors seeing contraction include: Wood Products; Paper Products; Plastics & Rubber Products; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; and Machinery.

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