ISM Manufacturing Index Improves, but Still Shows Contraction

Manufacturing in the U.S. improved in March but showed contraction for a 14th straight month, the Institute for Supply Management said Wednesday.

ISM’s monthly factory services index rose to a reading of 36.3, from 35.8 in February. Figures of more than 50 indicate expansion, while below that shows contraction.

ISM’s gauge of new orders jumped 8.1 points to 41.2, while export orders rose 1.5 to a 39 reading.

“The rapid decline in manufacturing appears to have moderated somewhat, as the [index] remains in the mid-30s for a third consecutive month,” said Norbert Ore, chair of ISM’s business survey committee.

“While the PMI is slightly higher in March, the new orders index offers greater encouragement, as it rose above the 40% mark for the first time in seven months,” he said in a statement.

The factory index measures manufacturing components of the economy.