Investing.com - Manufacturing activity in the U.S. expanded at the slowest pace in 14 months in March, fuelling concerns over the health of the economy, industry data showed on Wednesday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 51.5 last month from a reading of 52.9 in February. Analysts had expected the manufacturing PMI to decline to 52.5 in March.
The New Orders Index registered 51.8, a decrease of 0.7 points from the reading of 52.5 in February.
The Production Index registered 53.8, 0.1 points above the February reading of 53.7.
The Employment Index registered 50.0, 1.4 points below the February reading of 51.4, reflecting unchanged employment levels.
The Prices Index 39.0, 4.0 points above the February reading of 35.0, indicating lower raw materials prices for the fifth consecutive month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
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.
EUR/USD was trading at 1.0751 from around 1.0744 ahead of the release of the data, GBP/USD was at 1.4790 from 1.4779 earlier, while USD/JPY was at 119.67 compared to 119.74 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.67, compared to 98.71 ahead of the report.
Meanwhile, U.S. equity markets remained broadly lower. The Dow 30 slumped 1%, the S&P 500 tumbled 0.85%, while the Nasdaq Composite dropped 1.05%.
Elsewhere, in the commodities market, gold futures traded at $1,196.90 a troy ounce, compared to $1,197.10 ahead of the data, while crude oil traded at $47.99 a barrel from $47.92 earlier.