April 1, 2008

Economic activity in the manufacturing sector failed to grow in March, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The manufacturing sector failed to grow in March as the PMI fell below 50 percent for the second consecutive month. This completes the weakest quarterly performance for the U.S. economy since the second quarter 2003.

Manufacturers’ order backlogs continue to erode as the New Orders Index failed to grow for the fourth consecutive month. Additionally, manufacturers continue to experience heavy cost pressures, as the prices they pay are still rising even with slower overall demand. Some manufacturers are still benefiting from strong export demand and continue to see growth in export orders.

For the …

Source: Statistics Canada
 
Prices for manufactured products edged up in February, as higher prices for primary metals were partly offset by lower prices for motor vehicles. The growth in raw materials prices was slowed substantially by a drop in crude oil prices.

From January to February, prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), rose 0.1%, a marked slowdown compared with the increases of 1.1% in December and 1.0% in January. The growth in prices for petroleum and coal products slowed considerably after three months of vigorous increases. Excluding petroleum and coal products, the IPPI would have remained unchanged in February.

Strong growth for primary metal products and, to a …