A widely followed survey of U.S. manufacturers shows the sector slowed more than expected last month, according to data released Monday by the Institute for Supply Management.
The ISM's manufacturing purchasing managers' index fell to 51.3 in March from 54.2 in February. A reading above 50 indicates expanding activity.
Economists surveyed by Dow Jones Newswires had expected the March PMI to be little changed at 54.0. The latest reading is the weakest since a 50.2 level in December.
Earlier Monday, data provider Markit said its own final U.S. PMI rose to 54.6 in March from a final February reading of 54.3. As with the ISM, a Markit reading over 50 indicates expansion.
According to previous ISM reports, the U.S. factory sector struggled in the second half of 2012. But manufacturing has gained some traction so far in 2013, helped by a pickup in demand, including from foreign customers.
In March, however, the ISM new orders index slowed sharply to 51.4--the lowest since December--from 57.8 in February. The exports index, however, rose to 56.0 from 53.5.
Other indexes also showed mixed results last month.
The production index declined to 52.2 from 57.6 in February. The employment index increased to 54.2 from 52.6. The inventory index fell to 49.5 from 51.5.
The ISM report shows cost pressures among manufacturers eased last month but from a high level. The prices paid index stood at 54.5 in March after it jumped to 61.5 in February from 56.5 in January.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com.
The ISM's manufacturing purchasing managers' index fell to 51.3 in March from 54.2 in February. A reading above 50 indicates expanding activity.
Economists surveyed by Dow Jones Newswires had expected the March PMI to be little changed at 54.0. The latest reading is the weakest since a 50.2 level in December.
Earlier Monday, data provider Markit said its own final U.S. PMI rose to 54.6 in March from a final February reading of 54.3. As with the ISM, a Markit reading over 50 indicates expansion.
According to previous ISM reports, the U.S. factory sector struggled in the second half of 2012. But manufacturing has gained some traction so far in 2013, helped by a pickup in demand, including from foreign customers.
In March, however, the ISM new orders index slowed sharply to 51.4--the lowest since December--from 57.8 in February. The exports index, however, rose to 56.0 from 53.5.
Other indexes also showed mixed results last month.
The production index declined to 52.2 from 57.6 in February. The employment index increased to 54.2 from 52.6. The inventory index fell to 49.5 from 51.5.
The ISM report shows cost pressures among manufacturers eased last month but from a high level. The prices paid index stood at 54.5 in March after it jumped to 61.5 in February from 56.5 in January.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com.
