MNI BRIEF: ISM Mfg Chief Lowers View Of '23 Outlook

U.S. manufacturing contracted further in March as demand for goods declined and factories appear to be laying off workers, downgrading the view of growth this year, Institute for Supply Management economist Tim Fiore said Monday.

"We're probably now 46 to 49 for probably Q2," he said in a call with reporters, cutting his estimate for the manufacturing PMI from a range of 48 to 52 over the next few months. "The probability of July and August being strong months is probably being pushed out. We're looking now at a Q4 increase in activity levels."

"Companies are taking a much more conservative look than where they were in January in February and they're deciding that they need to bring that headcount down," he said. Manufacturing prices declined in March 2.1 percentage points to 49.2. "We've kind of stabilized on the pricing side and I don't think that we've gotten to the level that the Fed was hoping to get to, which is at 2%."