US manufacturing slows a bit more quickly than expected in March, ISM says

Factory sector activity in the US softened a bit more quickly than anticipated during the previous month, the results of a closely followed survey revealed.

The Institute for Supply Management's manufacturing sector Purchasing Managers' Index slipped from a reading of 47.7 for February to 46.3 in March.

Consensus had been for a decline to 47.1.

For both the headline PMI index and all subindices the 50 point level marked the threshold between an expansion - if above - or a contraction when below.

A subindex for new orders fell from 47.0 to 44.4, denoting a faster rate of contraction than in February.

The subíndex for employment slipped fell from 49.1 to 46.9 while that tracking the prices paid by firms slipped from 51.3 to 49.2.

Declines were also registered in the subindices for order backlogs and new export orders.

According to Andrew Hunter, deputy chief US economist at Capital Economics, the fall in the factory PMI to a new cyclical low signalled that the recovery in Chinese manufacturing after Covid had not helped US businesses and supported their view that a recession was on the horizon.

Furthermore, the drop in the subindex for suppliers' delivery times to 44.8 - a fresh post-financial crisis low - meant that price pressures were continuing to "evaporate".

"The prices paid index also edged lower and is consistent on past form with CPI inflation falling below 2% soon."

-- More to follow --