NEW YORK — Manufacturing activity declined for the eighth consecutive month in March, an industry group said Monday.
The National Association of Purchasing Management said its index of business activity rose to 43.1 from 41.9 in February.
An index above 50 signifies growth in manufacturing, while a figure below 50 means contraction.
Based on the manufacturing figures, the overall economy appeared to grow modestly in March, said Norbert J. Ore, who oversees the monthly survey for the NAPM.
The report is closely watched because it is one of the first indications of economic activity in March in the important manufacturing industry. The figures are based on a survey of purchasing executives who buy the raw materials for manufacturing at more than 350 industrial companies.
"The overall picture is one of continued decline in manufacturing activity during the month of March," said Ore. "The manufacturing sector is in its eighth month of decline and appears to lack drivers sufficient to stimulate recovery."
Analysts were expecting a level of 42.
The markets were mixed following the release of the survey, with the Dow Jones industrial average up 71 points to 9,950 and the NASDAQ composite index off 8 points to 1,832.
The news of the continued decline in the manufacturing sector comes amid a spate of recent reports indicating that the economy is foundering.
On Thursday, the Commerce Department reported the gross domestic product grew at an annual rate of just 1 percent in the October-December quarter, the worst showing since a 0.8 percent growth rate in the second quarter of 1995. A drop in spending on big-ticket items by businesses and consumers accounted for most of the weakness.
A level of the NAPM index below 42.7 generally indicates a contraction in the overall economy, said Ore, adding that the average for the first three months of the year of 42.1 percent corresponds to a 0.2 percent decrease in GDP.
However, the March number alone indicates a 0.1 percent increase in the GDP, Ore said.