The ISM Manufacturing PMI for the United States rose to 52.7 in March 2026 from 52.4 in February, exceeding market expectations of 52.5. This marked the strongest expansion in manufacturing activity since August 2022. The improvement was driven by a quicker rise in production (55.1 vs. 53.5), while growth in new orders slowed (53.5 vs. 55.8) and employment declined at a slightly faster pace (48.7 vs. 48.8).
The prices index surged to 78.3 in March from 70.5, its highest level since June 2022. The Supplier Deliveries Index signaled additional slowing for the fourth consecutive month, rising to 58.9 from 55.1.
“March also marks the first report with panelists citing the Iran war as a new factor affecting their business, alongside persistent uncertainty surrounding U.S. economic policy, despite the recent Supreme Court decision striking down International Emergency Economic Powers Act (IEEPA) tariffs. In March, 64% of all comments were negative. Among those negative remarks, roughly 20% referred to tariffs and about 40% to the war in the Middle East,” said Susan Spence, Chair of the ISM.
