Economy
April 2, 2018
ISM PMI: High Prices, Strong Demand vs. Tariff Concerns
Written by Sandy Williams
Manufacturing activity expanded in March, though at a slower rate than February, reports the Institute for Supply Management. ISM’s March PMI registered 59.3 percent, down from 60.8 percent in the February survey of corporate purchasing managers. Any reading above 50 indicates growth. New orders continued to expand in March, although slowing 2.3 percentage points from February to a reading of 61.9 percent. Production dipped one percentage point and inventories of raw materials slipped 1.2 points. The customer inventories index, at 42.0 percent, was at its lowest level since July 2011.
The combination of low inventories and high backlogs foretells strong demand in the coming months, despite slower new orders in March, said ISM.
