The PMI in the US manufacturing sector fell to the lowest since May 2020

According to the Institute for Supply Management (ISM), the index of business activity in the US manufacturing sector (ISM Manufacturing) in March fell to the lowest value since May 2020 – 46.3 points. A month earlier, the indicator was marked at the level of 47.7 points.

Analysts on average predicted a decrease in the index to 47.5 points. The indicator value below 50 points indicates a decline in activity in the sector.

The index of new orders fell to 44.3 from 47, and the employment index to 46.9 from 49.1. The inflation component, the index of paid prices, fell to 49.2 from 51.3, while analysts expected an increase to 53.8 points.

Experts note that since the members of the Committee on the survey of Entrepreneurs reported a decrease in the growth rate of new orders over the past 10 months, the readings of the March composite index reflect that companies continue to reduce production rates in order to better meet demand for the first half of 2023 and prepare for growth in late summer and early autumn.

After the release of the data, the dollar was under pressure, as a result of which the US dollar index lost 0.5%, reaching 101.665.