March 2012 ISM Reports

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The pace of growth in manufacturing sped up slightly in March, with the Institute for Supply Management’s (ISM) PMI rising to 53.4 percent, from 52.4 in February (50 percent is the breakpoint between contraction and expansion). After reciting some report details, Bradley Holcomb, chair of ISM’s Manufacturing Business Survey Committee, wrapped up his comments by saying, “Of the 18 industries included in the survey, 15 are experiencing overall growth. Comments from the panel remain positive, with several respondents citing increased sales and demand for the next few months."
 

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The non-manufacturing sector grew at a slower pace in March, reflected by a 1.3 percentage point drop (to 56.0 percent) in the non-manufacturing index (now known simply as the “NMI”). "Respondents' comments remain mostly optimistic about business conditions. They indicate that increased discretionary spending reflects the increased confidence level of businesses and consumers," concluded Anthony Nieves, chair of ISM’s Non-Manufacturing Business Survey Committee. However, “there is continued concern about cost pressures and the instability of fuel prices.” As shown by the graph above, input prices rose more slowly for both the manufacturing and service sectors.
 

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More new orders and added employment helped Wood Products expand in March; the positive news for Paper Products was even broader. Real Estate and Construction both reported expansion in overall activity, while Ag & Forestry contracted.

Lumber, crude oil, diesel fuel and gasoline were up in price. Natural gas was the only relevant commodity down in price. No relevant commodities were in short supply.