ISM Manufacturing data contracts in March but beats forecast. - CountingPips Forex & Currency Trading Blog

April 1, 2008 - Forex Economic News

ISM Manufacturing data contracts in March but beats forecast.

U.S. Manufacturing data, released today by the Institute for Supply Management, showed that manufacturing activity failed to grow in March for the second consecutive month. March's ISM Report On Business index readings for economic activity were at 48.6 percent, slightly above of February's 48.3 percent and better than economic forecasts which expected a 47.5 percent reading. A score above 50 is considered to be growth and less than 50 is considered to be contraction. The report showed that the overall economy grew for the 77th month in a row despite the manufacturing contraction.

Norbert J. Ore, chair of the ISM Business Survey Committee, stated in the report that, "The manufacturing sector failed to grow in March as the PMI fell below 50 percent for the second consecutive month. This completes the weakest quarterly performance for the U.S. economy since Q2 of 2003."

New Orders, production, inventories and imports all showed a decline for March compared to February while employment, supplier deliveries, customers inventories, prices and exports all showed increased levels for the month. Exports, getting a boost from a low U.S. dollar, are growing faster according to the report and have shown growth for 64 straight months.

The U.S. dollar has traded higher against its major currency counterparts today in the U.S. trading session. The EUR/USD has fallen from an intraday high of around 1.5780 to 1.5597 after 12 pm EST.

Tags: manufacturing, ism, us dollar, eur/usd, institute for supply management, business report

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