Economic activity in the U.S. manufacturing sector declined further in March, but at a slower rate than in February, the Institute for Supply Management reported today. The institute's key purchasing managers' index for manufacturing posted a reading of 36.3 in March, up from February's reading of 35.8. However, only readings of more than 50 indicate expansion.

"The rapid decline in manufacturing appears to have moderated somewhat as the [purchasing managers' index] remains in the mid-30s for a third consecutive month," said Norbert Ore, chair of the institute's manufacturing business survey committee.

Ore also said the institute questioned purchasing managers about the federal economic stimulus package, and five of the 18 manufacturing industries reported they expect to get some benefit from it.