ISM Alert: All Components in Contraction for First Time Since 2009

Source: Economics Group of Wells Fargo Bank, N.A.Summary While some parts of the service sector demonstrate resilience to the fastest rate hikes in a generation, the message from today’s ISM manufacturing index is that the factory sector is reeling. The headline measure fell to its lowest since 2020, and every sub-component is below 50. We All Fall Down: ISM Signaling Theme Preceding Recession The ISM manufacturing report for March was a dud (chart). Not only was the headline index at its lowest since 2020, every sub-component was below the breakeven 50 for the first time since 2009. All but two (production and customer inventories) were lower versus the prior month (chart). The closest thing we get to good news in today’s report is that the slowing in the factory sector is pushing prices lower and supply chains are continuing to heal, benefiting from the slack. At 49.2 in March, the prices paid measure slipped back into contraction. Supplier deliveries also fell to 44.8, the lowest reading since 2009 signaling faster deliveries. READ FULL ARTICLE>>