ISM Manufacturing Still Shows Expansion, Prices Paid Above Estimates

- ISM Manufacturing for March fell to 50.9 versus estimates of 51.4 and a reading of 52.3 in February.
- ISM Prices Paid for March rose to 65.5 versus estimates of 58.5 and 59.0 in February.

BOTTOM LINE: Manufacturing growth in the US slowed in March and an index of costs rose, Bloomberg reported. However, readings above 50.0 indicate expansion. The New Orders component of the index fell to 51.6 versus 54.9 the prior month. In a sign that inventory de-stocking may be subsiding, the March Chicago PMI, released on Friday, rose the most in 39 years and the New Orders component soared the most in US history. I continue to believe the manufacturing downturn has run its course and that overall activity is now improving. Inventory rebuilding should begin adding to economic growth next quarter.