Purchasing Managers’ Index - March 2016
PMI rose to 53.3 in March – New orders recover
- The PMI rose from 51.7 to 53.3 in March. Most sub-indices and other components recovered during the month. Only the sub-index for inventories of purchased materials and the index for prices of suppliers’ commodity and intermediate goods were below 50. Manufacturing activity cooled during the first quarter compared with the preceding quarter, however.
- The sub-index for new orders, which rose 4.8 points to 52.9 in March, was the main driver behind the monthly increase in the PMI. The improvement in orders came from both the domestic market, where the index rose by 3.9 points to 53.4, and the export market, where the reading was 50.0 (+3.2 points). At the same time order backlog estimates strengthened and the March index reading was 52.4.
- The sub-index for production fell from 55.1 to 54.3 in March and was the only sub-index to contribute negatively to the PMI. Despite that the quarterly average dropped, planned production is signaling continued optimism for the coming half-year. A further increase in hiring needs also give some hope for the coming months. The index reading for planned production was 62.4 and the sub-index for employment was 54.8 in March.
- Prices of suppliers’ commodity and intermediate goods fell for the eighth consecutive month even though the index gained 8.2 points to 44.5 in March. The three-month moving average rose from 39.9 to 40.5 and coming months will determine whether prices have bottomed out.
PMI - March 2016