In March, the ISM manufacturing PMI dropped to a 21-month low of 46.3.

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The Institute of Supply Management's manufacturing purchasing managers index fell to a 21-month low of 46.3 from 47.7 in February

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well below consensus forecasts for a more modest drop to 47.5.

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An index level of 50 typically separates growth from contraction, 

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and the ISM's index has now been below that level for five months,

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having fallen steadily over the last year. All three of the sub-indices in the report - for employment, 

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 new orders, and prices paid - also turned out below 50.

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U.S. stock futures shot higher on the news, while the dollar weakened and bond yields fell, 

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 as market participants bet that the slowdown implicit in the ISM numbers will force an early pause to the Federal Reserve's policy tightening cycle.

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The drop indirectly corroborates the surprise move over the weekend by the Organization of Petroleum

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Exporting Countries to cut oil output, in response to signs of weakening demand from advanced economies.

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