Posted April 1, 2022

Manufacturing slowed in March

Manufacturing activity slowed in March, as the Institute for Supply Management's monthly manufacturing index fell to a reading of 57.1 last month from 58.6 in February.

This is the lowest reading since September 2020 of 55.4 percent.

The New Orders Index registered 53.8 percent, down 7.9 percentage points compared to the February reading of 61.7 percent. The Production Index reading of 54.5 percent is a 4-percentage point decrease compared to February’s figure of 58.5 percent.

"In March, progress was made to solve the labor shortage problems at all tiers of the supply chain, which will result in improved factory throughput and supplier deliveries," said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Panelists reported lower rates of quits and early retirements compared to previous months, as well as improving internal and supplier labor positions. March brought back increasing rates of price expansion, due primarily to instability in global energy markets. Suppliers are not waiting to experience the full impacts of price increases before negotiating with their customers."

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