Manufacturing activity was revised a little weaker in March. At 47.3, the final sector PMI was down 0.1 point versus its final reading in February and nearly 3 points below the 50-expansion threshold.

Output fell for a tenth successive month as new orders dropped sharply and would have fallen more but for another decline in backlogs. Purchasing activity was duly trimmed as firms sought to run down stocks of inputs and while job creation was still positive, growth was only minimal. Moreover, manufacturers turned pessimistic towards output prospects over the next 12 months.

However, weaker cost pressures at least paved the way for output charges to rise at the slowest rate in just over two years. This largely reflected declining energy prices.

Today's update suggests that manufacturing will subtract from real GDP growth this quarter leaving services to fill the hole if total output is not to contract. That said, at 21 and 10 respectively, both the French ECDI and ECDI-P continue to show that economic activity in general is still running somewhat faster than market expectations.

No revision is expected to the flash 47.7 reading.

The Manufacturing Purchasing Managers' Index (PMI) provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector survey incorporating around 400 companies. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are released by S&P Global.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM manufacturing index in the U.S. and the S&P Global PMIs elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures..

The S&P Global PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.