TEMPE, ARIZ. — Economic activity in the manufacturing sector failed to grow in March, while the overall economy grew for the 17th consecutive month, reports the Institute for Supply Management's manufacturing Report On Business.

The report, issued April 1, cited comments from purchasing and supply executives focused on war, soft demand, energy availability and escalating prices. The war has slowed demand in a number of industries, including chemicals, electronics and industrial equipment.

The Purchasing Manager's Index indicates that the manufacturing economy declined in March, following four consecutive months of growth. The PMI for March registered 46.2 percentage points, a decrease of 4.3 percentage points compared to the February reading of 50.5 percent. A reading above 50 percent indicates a general expansion; below 50 percent indicates a general contraction.

The Manufacturing ISM Report On Business is based on data compiled from monthly replies to questions asked of purchasing and supply executives in more than 400 industrial companies. Survey responses reflect the change, if any, in the current month, in indicators including new orders, backlog of orders, new export orders, imports, production, supplier deliveries, inventories, customers' inventories, employment and prices.

The Report On Business is published monthly by the Institute for Supply Management; the full text version of the Report On Business is posted on ISM's Web site on the first business day of every month. For more information, visit www.ism.ws.