March Manufacturing Index Falls 2.8%; Still Growing

The Markit U.S. Manufacturing Purchasing Managers' Index (PMI) fell 2.8% to 55.5 for March, according to a Markit report (link opens PDF) released today. 

An above-50 reading denotes positive change from the previous month, putting this month's report in growth territory, albeit at a slower rate. After February notched a reading of 57.1, analysts had expected a 56.8 reading from March's final reading. 

This latest reading clocked in at the same level as Markit's "flash" estimate two weeks ago. The "flash" estimate is typically based on approximately 85% to 90% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data.

Despite the dip from February, this report keeps manufacturing on "solid growth footing," according to Markit. After February's index came in at the second-fastest pace in almost a year, March's numbers are still the second-highest reading since January 2013.

On a component-by-component basis, the all-important new orders index fell 1.5 points to 58.1, while new export orders dipped 0.5 points to 51.1. Output eased off 0.3 points but remains near February's almost three-year high  of 57.8. 

Markit chief economist Chris Williamson was quoted as saying:

The fall in the composite Manufacturing PMI masks the ongoing resilience of output, new orders and employment growth, all of which continued to rise at historically strong rates in March. That's because the PMI also includes a measure of supplier delivery times, which dragged the PMI down but only because deliveries were quicker as a result of improved weather.

Williamson also noted that falling inventory levels should push companies to increase business investment and hire more workers in the next few months.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2898739, ~/Articles/ArticleHandler.aspx, 12/21/2014 4:07:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement