IS ISM March manufacturing index 46.3 vs 47.5 prelim | Forexlive

• Prior was 47.7
• Prices paid 49.2 vs 51.0 estimate. Last month 51.3
• Employment 46.9 vs. 49.1 last month
• New orders 44.3 vs. 47.0 last month
• Production 47.3 vs 47.3 last month
• Order backlog 43.9 vs. 45.1 last month
• New export orders 47.6 vs. 49.9 last month
• Imports 47.9 versus 49.9 last month

This is the fifth month in row below 50 and lowest since the pandemic. This is no big surprise as freight and rail loads continue to fall as inventories are drawn down and production normalizes after the pandemic.

Comments in the report:

• “Orders and production are fairly flat month over month. Lead times
  have stabilized in most areas, so looking at reducing commitments on new
  orders, except for a few strategic electronic buys with lead times that
  are still too long.” [Computer & Electronic Products]
• “Sales a bit down, and budgets being cut with a greater emphasis on savings.” [Chemical Products]
• “Business is doing generally well, with input costs falling in some
  areas and rising in others.” [Food, Beverage & Tobacco Products]
• “Sales are slowing at an increasing rate, which is allowing us to
  burn through back orders at a faster-than-expected pace.”
  [Transportation Equipment]
• “Lead times are still improving, but prices continue to face
  inflationary pressures. Prices of steel and steel products are going up
  some. Hydraulic components are still facing extended lead times. We are
  increasing inventory levels of imports due to global uncertainty from
  the ongoing war in Ukraine and threats from China.” [Machinery]
• “Overall, (our) first quarter is going better than planned, with
  sales increases of about 7 percent versus a budget of 4.5 percent.
  However, sales volume is pulling down our automotive original equipment
  manufacturer (OEM) side, which is the majority of our business. We
  believe the second quarter will be hard but are holding to our outlook.”
  [Fabricated Metal Products]
• “Business is still slow overall. Customers have not yet picked up
  orders at pre-pandemic levels.” [Apparel, Leather & Allied Products]
• “Overall, things feel more stable in the first quarter 2023 than
  they did throughout 2021-22. Customer demand is — as expected — growing
  well, and the overall supply environment is far better than the previous
  two years. This is not to say there are not challenges; there
  absolutely are. However, there are fewer issues cropping up each week,
  and supply challenges are generally more like the ‘typical’ issues we
  experienced before the pandemic. We are closely monitoring the global
  banking situation, but no impacts have been experienced or are expected
  at this time. Ongoing tensions between the U.S. and China are another
  issue to watch.” [Miscellaneous Manufacturing]
• “New orders are starting to soften and supplier deliveries are
  improving slightly. This is allowing us to reduce (our) backlog and
  build a buffer in some categories. The supply chain disruption —
  particularly in electronics — is still significant compared to
  pre-pandemic conditions.” [Electrical Equipment, Appliances &
  Components]
• “Overall, business continues to remain strong. We are still
  experiencing supply chain issues on several indirect supplies.” [Primary
  Metals]

/US dollar