US manufacturing activity drops in March, nears 3-year low: Media Miss

Apr 04, 2023

Mahmoud Bennett Social Media Producer

By Mahmoud Bennett (Social Media Producer), Ben Burke (Writer/Producer), Stacey Chamberlain (Digital Producer)

Bias Distribution Powered by Ground News™

When it comes to U.S. manufacturing, there’s bad news in store for the Biden administration. According to the Institute for Supply Management, manufacturing activity dipped to its lowest level in nearly three years in March. The institute’s Purchasing Managers’ Index (PMI) fell from 47.7% in February to 46.3% in March. The New Orders Index had an even sharper fall as it dropped from 47% to 44.3%.

For the first time since 2009, every sub-component of the PMI was below 50%. A reading below 50% generally indicates that manufacturing is contracting.

While it may not be a good sign for economic growth, the numbers may be a sign of relief for the Federal Reserve. The Fed has raised its benchmark lending rate nine times in the past 13 months in an effort to cool high inflation. This may be a sign that those hikes are starting to work.

Straight Arrow News aims to identify when stories are being underreported on either side of the political aisle and media landscape. This story is a Media Miss for left-leaning outlets, with most sources reporting it being either right-leaning or center-oriented outlets, according to Ground.News.

Tags: Federal Reserve, Inflation, Media Miss, U.S. Economy

MAHMOUD BENNETT: BAD NEWS FOR THE BIDEN ADMINISTRATION WHEN IT COMES TO U.S. MANUFACTURING. ACCORDING TO THE INSTITUTE FOR SUPPLY MANAGEMENT — MANUFACTURING ACTIVITY DIPPED TO ITS LOWEST LEVEL IN NEARLY THREE YEARS LAST MONTH.

THE INSTITUTE’S PURCHASING MANAGERS’ INDEX — OR PMI — FELL FROM 47-POINT-7 PERCENT IN FEBRUARY — TO 46-POINT-3 IN MARCH. THE NEW ORDERS INDEX HAD AN EVEN SHARPER FALL — DROPPING FROM 47 PERCENT TO 44-POINT-3 PERCENT.

FOR THE FIRST TIME SINCE 2009 — EVERY SUB-COMPONENT OF THE P-M-I WERE BELOW 50 PERCENT. A READING BELOW 50 PERCENT GENERALLY INDICATES THAT MANUFACTURING IS CONTRACTING.

WHILE IT MAY NOT BE A GOOD SIGN FOR ECONOMIC GROWTH — THE NUMBERS MAY BE A SIGN OF RELIEF FOR THE FEDERAL RESERVE. THE FED HAS RAISED ITS BENCHMARK LENDING RATE NINE TIMES IN THE PAST 13 MONTHS IN AN EFFORT TO COOL HIGH INFLATION. THIS MAY BE A SIGN THAT THOSE HIKES ARE STARTING TO WORK.

THIS STORY IS CONSIDERED A MEDIA MISS — AS IT HAS BEEN UNDERREPORTED BY LEFT-LEANING OUTLETS. AT STRAIGHT ARROW NEWS — WE WORK TO BRING YOU A VARIETY OF STORIES.

MANUFACTURING TOOK A HARD HIT DURING THE PANDEMIC — AS SUPPLY CHAIN ISSUES MARRED THE FIRST TWO YEARS OF JOE BIDEN’S PRESIDENCY. IT WOULD MAKE SENSE THAT OUTLETS THAT ARE MORE SUPPORTIVE OF THE PRESIDENT WOULD BE MORE HESITANT TO REPORT ON SLOWDOWNS IN MANUFACTURING.