Data released by S&P Global's Statistics Office on Thursday showed that the manufacturing sector in the United States experienced a slowdown during March, with the preliminary reading of the Manufacturing Purchasing Managers' Index (PMI) at around 49.8 points, falling short of expectations which indicated a reading of 51.9 points. This also represents a significant decline compared to the previous reading of 52.7 points in February. This decrease indicates a contraction in activity within the manufacturing sector, as readings below 50 points reflect a decline in production and demand levels in American factories.
In contrast, the services sector showed positive performance exceeding expectations, with the Services PMI rising to 54.3 points, surpassing forecasts that were pointing to 51.2 points, and higher than the previous reading of 51.0 points in February. This growth reflects an increasing demand for services, indicating strength in consumer spending and a recovery in the services sector of the U.S. economy.
It is worth mentioning that Purchasing Managers' Index (PMI) readings are used to measure the performance of economic sectors, where readings above 50 points indicate expansion and growth, while readings below this level reflect a slowdown in economic activity. Typically, these indices release two readings per month: the first is the preliminary estimate, which has the greatest impact on markets, while the final reading is published later to reflect the latest data updates.
