Purchasing Managers’ Index - March 2015
PMI rises to 54.1 in March – underlying components offer hope for the future
- The PMI rose by 0.8 points in March, from 53.3 to 54.1. This means that the main index has remained in growth territory for nearly two years. Contributions from the sub-indexes were fairly limited, with the biggest positive contribution from production (0.7 points), while inventories of purchased materials fell by -0.5 points, dragging down the PMI.
- The sub-index for new orders rose to 54.5 in March from 52.8 in the previous month. The fact that the index for order backlogs fell at the same time by 2.0 points to 51.8 may reflect February’s weak order bookings. The sub-index for employment increased to 52.9 in March and the trend, according to a three-month moving average, signals steady hiring plans.
- The sub-index for production rose to 57.5 in March, up 2.6 points from February. The average for the first quarter was 57.6, compared with 55.5 for the period October-December 2013 and an average of 58.1 for the first quarter 2014. Production plans remained expansive, though the pace slowed from the previous month.
- The index for prices of suppliers’ commodity and intermediate goods climbed over the 50 mark to 52.6 in March. According to purchasing managers, the weaker krona, mainly against the dollar, was one of the contributing factors. In addition, fewer commodity and input goods noted price declines compared with February.
PMI March 2015