March ISM ROB

The U.S. manufacturing sector grew for the 20th consecutive month and the overall economy grew for the 22nd consecutive month in March, according to the Institute of Supply Management’s Report on Business. The petroleum and coal products industry ranked 12th out of 15 industries that reported growth for the month.

The PMI registered 61.2 percent, a decrease of less than one percentage point compared to February. Despite the decline, the index still indicates that the manufacturing sector and overall economy are expanding.

The New Orders Index registered 63.3 percent, almost 5 percentage points lower than February. It is the 21st consecutive month of growth in the index. The petroleum and coal products industry was 8th out of 14 industries reporting growth for the month.

ISM’s Production Index registered 69 percent in March, almost 3 percentage points higher than February’s reading. It was and the 22nd consecutive month the index registered above 50 percent. The petroleum and coal industry reported the 10th largest growth in production out of 14 industries.

The Employment Index was 63 percent, 1.5 percentage points lower than February. Even so, it was the 18th consecutive month of growth in manufacturing employment. Petroleum and coal products was one of two industry sectors reporting a decrease in employment.

March saw a slowdown of deliveries from manufacturing organizations to customers. The Supplier Deliveries Index registered 63.1 percent, almost 4 percentage points higher than February and an indication that deliveries are slower. Petroleum and coal products ranked 5th out of 11 industries with slower delivery times.

Manufacturers’ inventories decreased in March for the second consecutive month, with the Inventories’ Index registering at 47.4 percent. That was 1.4 percentage points lower than February. The petroleum and coal products industry reported the third-highest decline out of eight industries.

Manufacturers said they believe customer’s inventories are too low for the 24th consecutive month. The Customers’ Inventories Index registered 39.5 percent in March, half a percentage point lower than in February.

The Price Index for March was 85 percent, the highest reading since July 2008 and the 21st consecutive month the index has registered above 50 percent. Most of the supply executives, 72 percent, reported paying higher prices while 2 percent said they were paying lower prices. Another 26 percent said they were paying the same amount for goods as in February. Petroleum and coal products ranked 17th out of all 18 industries.

ISM’s Backlog of Orders Index registered 52.5 percent in March. That was more than 6 percentage points lower than in February. Of the 85 percent of executives who reported a backlog, 26 percent said they have larger backlogs, 21 percent reported smaller backlogs and 53 percent reported no change from February. Petroleum and coal products reported the third highest increase in order backlogs out of eight industries.

The New Export Orders Index registered 56 percent in March, more than 6 percentage points lower than February and the 21st consecutive month of growth. The petroleum and coal products industry reported the second highest amount of new export orders out of eight industries.

Imports of materials continued to grow in March as the index was 56.5 percent, the 19th consecutive month of growth in imports. The petroleum and coal products industry reported the second highest decrease in imports out of four industries.

Read more financial news

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...