ISM confirms a slowdown

The Institue for Supply Management released its national survey.  Mostly the economy is still growing, but 3/4 of the indices show slower growth. Thus we can confirm that over the quarter the growth rate will likely be negative. But on a year over year basis, still positive. The employment index was unchanges at 50%, considered the zero growth mark.  This confirms the ADP job report of basically zero growth in manufacturing. Hence he Atlanta Nowcast seems to be accurate, showing a .2% Year over Year growth.  

The report cites health care premiums as their second major concern, after the harsh winter.

ISM: The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management^® (ISM^®) Manufacturing Business Survey Committee. "The March PMI^® registered 51.5 percent, a decrease of 1.4 percentage points from February’s reading of 52.9 percent. The New Orders Index registered 51.8 percent, a decrease of 0.7 percentage point from the reading of 52.5 percent in February. The Production Index registered 53.8 percent, 0.1 percentage point above the February reading of 53.7 percent. The Employment Index registered 50 percent, 1.4 percentage points below the February reading of 51.4 percent, reflecting unchanged employment levels from February. Inventories of raw materials registered 51.5 percent, a decrease of 1 percentage point from the February reading of 52.5 percent. The Prices Index registered 39 percent, 4 percentage points above the February reading of 35 percent, indicating lower raw materials prices for the fifth consecutive month. Comments from the panel refer to continuing challenges from the West Coast port issue, lower oil prices having both positive and negative impacts depending upon the industry, residual effects of the harsh winter, higher costs of healthcare premiums, and challenges associated with the stronger dollar on international business."