The Manufacturing PMI (Purchasing Managers’ Index) published by the ISM (Institute of Supply Management) registered 53.7 percent for the month of March. This is an increase of 0.5 percent from February’s reading of 53.2.
But, what does this number mean? And how are they calculated?
This index number is based off a monthly polling of businesses that represent the makeup of various manufacturing sectors. 400 purchasing managers are surveyed in five different fields; production level, new orders from customers, speed of supplier deliveries, inventories and employment level. Respondents report either better, same, or worse conditions than the previous month. Any reading above 50% indicates growth, and any reading below 50% indicates contraction.
Based off our insight and these numbers, the sector appears to be strong, and looks to continue this trend.