Financial News: U.S. Manufacturing Activity Contracts In March After Two

U.S. Manufacturing Activity Contracts In March After Two Months Of Growth

04/01/2025 - 10:43:00 (RTTNews)

(RTTNews) - Activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion, according to a report released by the Institute for Supply Management on Tuesday.

The ISM said its manufacturing PMI dipped to 49.0 in March from 50.3 in February, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 49.5.

The modest decrease by the headline index partly reflected an accelerated contraction by new orders, as the new orders index slid to 45.2 in March from 48.6 in February.

"Orders continue to slow, as discussions about who will pay for potential tariff costs are the prime topic of negotiations between buyers and sellers," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

The report also showed a downturn by production, with the production index falling to 48.3 in March from 50.7 in February.

The employment index also declined to 44.7 in March from 47.6 in February, suggesting employment in the manufacturing sector decreased for the second consecutive month.

Meanwhile, the ISM said the prices index jumped to 69.4 in March from 62.4 in February, indicating a notable acceleration by the pace of price growth.

The Institute for Supply Management is scheduled to release a separate report on U.S. service sector activity in the month of March on Thursday.

The services PMI is currently expected to edge down to 53.0 in March after inching up to 53.5 in February, but a reading above 50 would still indicate growth.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Slovenia Retail Sales Fall 2.0% In March (01 hr(s), 08 min(s), 01 sec(s) ago)
(RTTNews) - Retail trade turnover in Slovenia shrunk in March amid weaker demand for foods as well ...Full Story»

U.S. Consumer Confidence Slumps More Than Expected In April (01 hr(s), 15 min(s), 01 sec(s) ago)
(RTTNews) - Largely reflecting a significant deterioration by consumer expectations, the Conferenc ...Full Story»

Euro Area Inflation Expectations Highest Since 2024: ECB Survey (01 hr(s), 22 min(s), 01 sec(s) ago)
(RTTNews) - Eurozone consumers' inflation expectations for one year and three years ahead incr ...Full Story»

U.S. Job Openings Decrease More Than Expected In March (01 hr(s), 27 min(s), 01 sec(s) ago)
(RTTNews) - The Labor Department released a report on Tuesday showing job openings in the U.S. fel ...Full Story»

Turkey Economic Confidence Weakens In April (01 hr(s), 31 min(s), 01 sec(s) ago)
(RTTNews) - Turkey's economic sentiment weakened in April to the lowest level in seven months, ...Full Story»

Swedish Economic Confidence Falls Slightly In April (02 hr(s), 37 min(s), 01 sec(s) ago)
(RTTNews) - Sweden's economic confidence decreased further in April to the lowest level in six ...Full Story»

Iceland Inflation Accelerates First Time In 9 Months (03 hr(s), 06 min(s), 01 sec(s) ago)
(RTTNews) - Consumer price inflation climbed in April for the first time in nine months, prelimina ...Full Story»

Eurozone Loans To Private Sector Rise Faster (03 hr(s), 21 min(s), 01 sec(s) ago)
(RTTNews) - Adjusted loans to the euro area private sector grew at a faster pace in March as lendi ...Full Story»