Manufacturing PMI Finishes March Steady And Firm

The manufacturing PMI finishes March steady and firm at 55.6, 1 tenth lower than the mid-month flash and 3 tenths shy of February. Strength in new orders, including export orders, is a highlight of the March report as is a 3-year high for business expectations. Output is strong but slowing and the sample continues to hire but at an easing rate.

Capacity strains are evident including the sharpest increase in delivery times in four years and also a jump in input costs with respondents citing rising tariffs and also rising raw material costs. And higher prices are being passed through to customers with selling prices rising to a 5-year high.

The data are piling up showing accelerating factory conditions including building signs of inflation. This index has been on the climb over the last half year but is still running noticeably cooler than the ISM report which has been running very hot