ISM Manufacturing Index Declines in March

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he Institute for Supply Management said Monday its index of U.S. manufacturing fell in March, following an increase in February.

SM’s factory index dropped to 55.2 from 56.7 the previous month, the group said in its monthly report. That was greater below the 57.7 predicted by analysts, Bloomberg reported.

Readings higher than 50 indicate growth and the index has shown expansion since May 2003.

“The manufacturing sector, led by continued strength in new orders and production, continued to grow in March, said Norbert Ore, chairman of ISM’s manufacturing committee.

“ISM data indicates that it was a good quarter for U.S. manufacturing. Prices are still a major concern, particularly in the energy and metals markets. In general, manufacturing continues to experience a significant level of growth,” he said in a statement.

SM’s prices-paid index jumped to 66.5 from 62.5 for the month.

New orders, which make up about a third of the total index, fell to 58.4 from 61.9 February.

The production index, a measure of work being performed, inched up to 57.5 from 57.4.

The employment index fell to 52.5 from 55. The inventories index fell to 48.7 from 49.6, while new export orders rose to 57.3 from 57.

SM, based in Tempe, Ariz., surveys more than 400 companies in 20 industries, including transportation, to compile its index.