The US ISM Manufacturing PMI fell -1.3 pts to 49.0 in March, below expectations of a drop to 49.5.

• The New Orders index fell -3.4 pts to 45.2, the lowest reading since May 2023, and the Production index fell -2.4 pts to 48.3.
• The Employment index fell -2.9 pts to 44.7. Respondents’ companies continue to reduce head counts through layoffs, attrition and hiring freezes, with an approximate 1-to-1.3 ratio of hiring versus staff-reduction comments.
• The Inventories index jumped 3.5 pts to 53.4 as manufacturers built their stockpiles of goods ahead of tariff hikes.
• The Prices index also saw a large increase, up 7.0 pts to 69.4 which is the highest since June 2022, as tariffs start to work into input costs.