Ahead of the Bell: ISM manufacturing index

Economists expect a measure of the health of the manufacturing sector fell for the 14th straight month in March, but at a slightly slower rate than the previous month.

The Institute for Supply Management's manufacturing index likely rose to 36 last month from 35.8 in February, according to Wall Street economists polled by Thomson Reuters.

A reading below 50 signals contraction. The index hit a 28-year low of 32.9 in December.

The report, based on a poll of the Tempe, Ariz.-based trade group of purchasing executives, covers indicators including new orders, production, employment, inventories, prices, and export and import orders. It is scheduled to be released Wednesday at 10 a.m. EDT.

In February, none of the 18 manufacturing sectors covered by the survey reported growth.

But the Commerce Department last week said demand for large manufactured goods rose 3.4 percent in February after having shrunk for six straight months, surprising markets and economists. Sales of new homes also rose unexpectedly, helping propel a rally in stock prices.

But the auto sector, which employed about 711,000 people on the manufacturing side alone in February, has been cutting jobs and surviving on billions in government aid as sales drop to their lowest levels in almost 30 years.

President Barack Obama laid out a possible "prepackaged bankruptcy" as an option for General Motors Corp. and Chrysler LLC on Monday. He gave the companies short deadlines to submit new restructuring plans and prove themselves viable, which would include more concessions from the United Auto Workers union.

GM and Chrysler employ around 140,000 people in the U.S., even after cutting tens of thousands of jobs in the past year.

According to the Labor Department, the number of unemployed people in the manufacturing sector in February rose to 1.8 million _ or 11.5 percent of that work force _ from 820,000, or 5 percent, at the same time in 2008.

Scientific instruments maker Agilent Technologies Inc. last week said it was laying off 2,700 workers as demand for its products drops. The Santa Clara, Calif.-based company has shed 3,800 total positions this year as it expects revenue in its electronic measurement businesses to drop by about 30 percent to record lows.

In March, United Technologies Corp., which owns engine maker Pratt & Whitney, Otis elevator and other businesses, said it would cut 11,600 jobs worldwide and maybe 3,000 more in Connecticut if the Defense Department cancels production of the F-22 fighter jet.

Rising unemployment nationwide is eating into consumer demand for U.S. goods, while strapped corporations cut capital budgets. Meanwhile, recessions in Europe and plunging growth in Asia are slowing U.S. exports.

The latest trade figures available, from January, showed the value of U.S. exports of goods fell to $82.2 billion from $104.6 billion in the same month last year, according to the Commerce Department.