Milwaukee-area manufacturing activity rebounded in March after contracting in February, according to a new report from the Institute for Supply Management-Milwaukee. The industry has now seen growth in six of the past seven months.
The Marquette-ISM Report on Manufacturing showed the Purchasing Managers Index at 56.03 in March, “well above the 50-level indicating positive territory.” The PMI registered at 48.59 in February, the only time it was below 50 in the past seven months.
March survey respondents said:
- “Short term issue with higher than expected natural gas prices.
- “Delays in rail car deliveries have been a huge problem this winter and they are still not back to where they should be.”
- “Increase prices to cover price increase”
- “Generally stable pricing, so far”
- “End of Year increases continue”
In addition to PMI, new orders, production, employment, prices, backlog of orders and imports were growing in March. Supplier deliveries, customer inventories and exports were slower or declining last month.
Blue collar and white collar employment were both growing in March.
Average lead time for capital expenditures decreased by eight days to 91 days, average lead time for production materials remained decreased two days to 35 days and average lead time for maintenance, repair and operating (MRO) supplies decreased by one day to 19 days.
In the six month outlook on business conditions, there is an upward shift in positive expectations compared with February in terms of market conditions. Approximately 42.9 percent of respondents expect positive conditions, 42.9 percent expect conditions to remain the same and 14.3 percent expect conditions to worsen in the next six months.
