March ISM US Manufacturing Index Rises From February, Indicates Faster Expansion

10:12 AM EDT, 04/01/2026 (MT Newswires) -- The Institute for Supply Management's US manufacturing index rose to 52.7 in March from 52.4 in February, above the expectations for a 52.3 reading in a survey compiled by Bloomberg as of 7:30 am ET.

There were gains in the readings for production and prices, but declines in the readings of new orders, employment and order backlogs.

"This month also marks the first report with panelists citing the Iran war as a new impact to their business, along with ongoing uncertainty with US economic policy, despite the recent Supreme Court ruling striking down International Emergency Economic Powers Act (IEEPA) tariffs," said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee. "In March, 64% of comments overall were negative. Among the negative comments, about 20% cited tariffs and about 40% the war in the Middle East."

The monthly national manufacturing reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US manufacturing sector, generally a positive for manufacturing industry stocks. However, if that strength comes with rising input prices due to shortages, that could be a negative for stocks as well as bonds.

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