ISM Manufacturing PMI dropped from 47.7 to 46.3 in March, below expectation of 47.5. This is the fifth month of contraction and continuation of a downward trend that began in June 2022. The Manufacturing PMI is at its lowest level since May 2020, when it registered 43.5 percent.
Looking at some details, new orders dropped from 47.0 to 44.3. Production rose from 47.3 to 47.8. Prices dropped from 51.3 to 49.2. Employment dropped notably from 49.1 to 46.9.
The past relationship between the Manufacturing PMI and the overall economy indicates that the March reading (46.3 percent) corresponds to a change of minus-0.9 percent in real gross domestic product (GDP) on an annualized basis.
