It flipped from a strong 4.9% monthly gain in February.
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Mirroring the latest MDM Forecast, revenue forecasts from manufacturing respondent now expect low single-digit revenue growth.
The month's production figure narrowly trailed Wall Street economists' expectation.
It illustrated sticky inflation that is likely another roadblock to the Federal Reserve making interest rate cuts anytime soon.
All but two of the 19 wholesale distribution sectors we track moved more pessimistic month-to-month in our May forecast for 2024 revenue growth, which moved into lower single digits.
March orders typically see a large bump, as many sector manufacturers end their fiscal year at the end of the month.
Month-to-month, sales were down in seven of the 10 durable goods categories that the Census Bureau tracks.
Economists had forecasted a monthly gain of 0.3%.
Persistent high inflation led the Fed to maintain its benchmark lending rate at a 23-year high.
It was a reversion from a March that had seen the first expansion-territory PMI since September 2022.
It reversed February’s 0.5% increase.
It was the second straight deceleration and fell well short of consensus forecasts, dampening hopes of Federal interest rate cuts.
It was the first consecutive increase since June of last year.
After a weak finish to 2023, the industry saw rebounds in monthly orders and shipments in the first two months of 2024.
It marked the first time growth occurred over two straight months since March-April of 2023.
The U.S. Census Bureau’s annual March revisions to wholesale trade revenues considerably lifted its largest sector – oil & gas – which likewise raised the latest MDM forecast modeling.
Though less than expected, the latest rise in the wholesale inflation gauge suggests Federal interest rate cuts could be further delayed.
It's another posititive indicator for the U.S. industrial economy, following a strong PMI reading at the start of April.
It was a solid rebound from a 3.8% decline in January.
During the first two months of the year, spending was up 11.9% from the same period in 2023.
