US Manufacturing Activity Nears Three-year Low; Price Pressures Abate – By Lucia Mutikani (IB Times) / Apr 3 2023
U.S. manufacturing activity slumped to the lowest level in nearly three years in March as new orders plunged, and activity could decline further amid tightening credit conditions.
The Institute for Supply Management (ISM) survey on Monday also showed a continued reduction in factory employment last month, but inflation pressures subsided, with supplier delivery performance the fastest since March 2009. Rising borrowing costs as the Federal Reserve fights high inflation have cooled demand for goods, which are typically bought on credit.
“Manufacturing activity is moving deeper into the red and the million-dollar question is whether sputtering factory output will spread to the rest of the economy,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “New orders are off sharply in March and that could very well lead to production shutdowns and more layoffs later on this spring and summer.”
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