FX.co ★ U.S. Manufacturing PMI Declines Below 50 in March Indicating Contraction

The S&P Global Manufacturing Purchasing Managers' Index (PMI) for the United States took an unexpected downturn in March 2025, signaling a contraction in manufacturing activity. The latest PMI data, updated on March 24, indicates a drop from 52.7 in February to 49.8.

This latest reading marks the PMI's decline below the crucial 50.0 threshold, which delineates expansion from contraction in the manufacturing sector. February's PMI of 52.7 had indicated modest growth, but the fall to 49.8 reflects a shift in economic conditions, potentially influenced by decreased orders, supply chain disruptions, or wavering business confidence.

As the manufacturing sector navigates these challenges, stakeholders and policymakers will be closely monitoring upcoming economic indicators to assess the broader implications for the U.S. economy and to strategize potential responses to spur growth in the months ahead.