By Matt Grossman
Factory activity expanded in the U.S. in March, but the latest monthly reading from the Institute for Supply Management flashed a strong warning that inflation is resurgent amid the war in Iran.
The ISM's purchasing managers' index was 52.7 last month, versus 52.4 in February. Readings above 50 indicate a sectoral expansion. Analysts polled by The Wall Street Journal were expecting a reading of 52.1.
The survey's prices index hit 78.3, the highest reading since 2022. It was a jump from 70.5 in February.
All the commodities categories tracked by the survey rose in price, and none declined. Respondents to the survey said the war is adding to uncertainty and raising costs.
"Current Middle East unrest is already starting to impact business operations by increasing lead times, costs, container delays and the like," one manager in the food and beverage category told the survey.
On the other hand, some respondents told the survey that the Supreme Court's decision to strike down much of President Trump's tariff agenda could provide a lift.
At 48.7, the index for manufacturing employment indicated that jobs in the sector remained in contraction. ADP's private-sector payrolls report for March, released earlier Wednesday morning, also showed that manufacturing jobs fell last month.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
04-01-26 1107ET
