Blog – United States Manufacturing Sector Analysis and Commentary – March 2023 Summary: U.S. manufacturing-sector orders fell again in February, driven again by a decline in transportation equipment and manufactured durable goods orders, albeit at a slower pace than in January. New orders for manufactured goods fell 0.7% in February on month to $536.4 billion, compared with a revised 2.1% fall in January, data from the Commerce Department showed Tuesday. The reading is a touch weaker than the 0.6% decrease expected by economists in a poll by The Wall Street Journal. The fall was driven by a 2.8% drop in orders for transportation equipment, the data showed. Nondefense aircraft and parts orders once again dropped, by 6.6% in February, after a 56.3% dip in January, although the figures came after a hefty rise at the end of 2022. Even excluding transportation, total orders still fell 0.3%, a swing from a 0.8% rise in January. New orders for manufactured durable goods--those meant to last at least three years--fell 1.0% in February, in line with preliminary estimate and after a 5.0% increase in December. New orders for manufactured nondurable goods tumbled 0.4%. Surveys to manufacturers suggest that despite recent moderation of the fall in orders, the pace of declines could accelerate again. ISM purchasing managers index showed Monday that new orders at U.S. manufacturers contracted again in March, reaching its lowest level since May 2020. Source - https://www.marketscreener.com/news/latest/U-S-Factory-Orders-Fell-Again-in-February-Though-at-Slower-Pace--43426768/ PMI has fallen below 50 - https://www.prnewswire.com/news-releases/manufacturing-pmi-at-46-3-march-2023-manufacturing-ism-report-on-business-301787309.html United States factory orders decline in February 2023 - https://www.marketscreener.com/news/latest/U-S-Factory-Orders-Fell-Again-in-February-Though-at-Slower-Pace--43426768/ Nearshoring to Mexico continues to pick up steam. https://www.reuters.com/world/americas/nearshoring-bets-boost-mexican-real-estate-transport-shares-2023-04-04/ Producer price index decline in February 2023 - https://www.reuters.com/markets/us/us-producer-prices-unexpectedly-fall-february-2023-03-15/ United States continues to look at better ways to manage supply chains like critical metals - https://www.barrons.com/amp/articles/niocorp-achieves-processing-breakthrough-in-demonstration-plant-testing-of-niobium-and-titanium-production-19e70748 Broadband spending is expected to decline in 2023 - https://www.benton.org/headlines/wireless-capital-expenditures-north-america-poised-plunge-10-20-percent-2023 Market volatility continues to drive asset management decisions - https://www.usbank.com/investing/financial-perspectives/market-news/economic-news.html Government continues to address climate change with more spending in the green and clean economy - https://www.weforum.org/agenda/2023/04/clean-energy-government-investment-spending/