US manufacturing contracts more than expected, ISM data shows
By Benjamin Chiou
Date: Tuesday 01 Apr 2025
(Sharecast News) - The US manufacturing sector contracted by more than expected in March, according to a survey from the Institute for Supply Management (ISM) on Tuesday.
The ISM's US manufacturing purchasing managers' index (PMI) fell to 49.0 last month, 1.3 percentage points lower compared to the 50.3 reading in February. The consensus estimate was for a reading of 49.5.
The sector had expanded - showed by any print above 50.0 - over January and February in the first period of growth following more than two years of contraction.
According to the ISM, the new orders index fell to 45.2 from 48.6, while the production index declined to 48.3 from 50.7. At the same time, the prices index surged to 69.4 from 62.4.
"In March, US manufacturing activity slipped into contraction after expanding only marginally in February," said Timothy Fiore, chair of the ISM. "Demand and output weakened while input strengthened further, a negative for economic growth."
In contrast, in a separate survey on Tuesday, the final estimate of the S&P Global US manufacturing PMI for March was revised higher to 50.2, up from the preliminary reading of 49.8 released last week.
While down from the 52.7 mark in February - the sharpest rate of growth registered in almost three years - analysts had expected no change from the flash reading, meaning that the sector had expanded for third straight month.
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