ISM Factory Index Improves, But Still Shows Contraction

The Institute for Supply Management’s manufacturing index contracted in March but improved slightly from February, ISM said Tuesday.

ISM’s factory index rose to a reading of 48.6 in March, from 48.3 in February, the group said. Readings above 50 indicate expansion.

The February reading had been the lowest in almost five years.

Economists had forecast the survey would fall to a 47.5 reading, Bloomberg reported.

The survey’s new orders index fell 2.5 points to 46.5, while the production index fell 2 points to 48.7, ISM said.

The factory sector is one of trucking’s largest and most important customers.