The ISM Chicago PMI improved 2.1 pts to 47.6 in March, above the forecast of a reading of 45.2 and the third straight monthly gain.

• This is the highest level since November 2023 even though the index is contracting for the 16th straight month.
• The increase was largely driven by a rise in Production, with smaller increases in Employment, Order Backlogs and New Orders also contributing whilst Supplier Deliveries declined.
• Production increased 8.8 pts to the highest since December 2023, taking it into expansionary territory for the first time since June 2024.
• New Orders saw a minor 0.4 pt rise, with the subindex last higher than this in November 2023.
• Employment lifted 0.9 pts, only a marginal improvement from January 2025 which had recorded the lowest level since June 2020.
• Order Backlogs progressed by 0.7 pts, remaining the highest since September 2024.