The pace of U.S. manufacturing growth fell in March to its slowest in nearly two years, pressured by declining gains in new orders and stagnant employment, according to an industry report released Wednesday. The Institute for Supply Management (ISM) said its manufacturing-activity index fell to 51.5 last month from 52.9 in February. It was the fifth consecutive monthly drop. The reading was below economist expectations and was the weakest since May 2013. In the ISM index, any reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction. The index's new-orders component fell to 51.8 in February from 52.5 the previous month, while the employment index was at 50.0 from 51.4, both also at a 22-month low. The prices-paid component rose to 39 from 35 but marked the fourth consecutive month below 40. U.S. manufacturing has been pressured in recent months by falling oil prices, which reduce demand for pipelines and machinery, and a rising dollar, which makes U.S.-made products more expensive overseas, hurting exports.
