The New York City skyline in the United States

United States PMI March 2024

United States: Manufacturing sector PMI dips in March

The S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) fell to 51.9 in March from 52.2 in February. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in manufacturing sector operating conditions compared to the previous month.

Key drivers behind the latest PMI reading include a solid and accelerated rise in production, which was the sharpest in almost two years—primarily due to signs of improving demand conditions. Additionally, the rate of job creation quickened. Less positively, the pace of new orders growth ebbed, and firms continued to show a preference for drawing down inventories and scaling back purchasing activity.

On the pricing front, there were sharper rises in both input costs and output prices. This uptick in costs was attributed to higher oil and raw material prices, transport prices, and labor costs. Finally, businesses remained upbeat about the future, thanks to expectations for improved economic conditions ahead.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said:

“The US economy looks to have expanded at a solid pace again in the first quarter. A key development in recent months has been the broadening-out of the upturn from services to manufacturing, with reviving demand for goods driving the fastest increase in factory production since May 2022. Jobs growth has also picked up as firms boost capacity to meet demand. Rising capex spending has likewise buoyed orders for machinery and equipment, in a further sign of firms gaining confidence in the outlook.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen