Growth in the US manufacturing sector slowed for the fifth straight month in March, the Institute for Supply Management said Wednesday.
The ISM purchasing managers index for manufacturing tumbled to 51.5 in March from 52.9 in February.
A reading above 50 on the PMI, based on a survey of 18 manufacturing industries, indicates expansion.
Ten industries reported growth, led by paper and wood products and transportation equipment, compared with 12 in February. Contraction was reported by seven sectors, including apparel and petroleum and coal products.
Growth slackened in new orders, supplier deliveries, inventories, imports and prices.
"Comments from the panel refer to continuing challenges from the West Coast port issue, lower oil prices having both positive and negative impacts depending upon the industry, residual effects of the harsh winter, higher costs of healthcare premiums, and challenges associated with the stronger dollar on international business," the ISM said in a statement.
A manager in the computer and electronic products industry said that business was "really starting to slow down. Oil pricing is having a major effect on energy markets."
Jim O`Sullivan, chief US economist at High Frequency Economics, cautioned against interpreting the data as reflecting slower overall economic growth.
"Manufacturing is more exposed than non-manufacturing to the negative effects of the dollar and oil," he said. "Port delays and weather effects are still being cited as issues as well."
