13/04/2025
The U.S. manufacturing sector contracted in March after two consecutive months of expansion preceded by 26 months of contraction, as the Manufacturing PMI® registered 49 percent, 1.3 percentage points lower compared to the 50.3 percent reported in February. "In March, the Manufacturing PMI® reversed its recent momentum to register below its reading in December. Of the five subindexes that directly factor into the Manufacturing PMI®, two (Supplier Deliveries and Inventories) were in expansion territory, the same number as in February, when Production and Supplier Deliveries indicated growth. Slower supplier deliveries and expanded inventories in March are not considered positives for the economy: Both conditions figure to be temporary and are driven by tariff concerns, either delaying buyer/seller negotiations or advancing material deliveries that will be reversed after tariffs are deployed, leading to a drawdown of manufacturing inventory. Both the Employment and New Orders indexes moved further into contraction in March. Of the six biggest manufacturing industries, three (Petroleum & Coal Products; Computer & Electronic Products; and Transportation Equipment) registered growth," says Fiore. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.
