The Global Manufacturing PMI, compiled by JP Morgan with research and supply organisations, fell in March to 55.8 from 57.4 in February, but marked its 21st month above the 50 mark that separates growth from contraction.
"Although easing from a near-record high in February, the March PMI data remained well above long-run trend," JP Morgan's David Hensley said. Input prices saw a further marked increase as the inflation rate remained close to February's two-and-a-half year peak while job creation was reported by firms for the sixteenth month running in March, with the rate of increase remaining close to February's series record peak, JP Morgan said.
Earlier data showed factories in Europe eased off the accelerator last month but Chinese and Indian manufacturers bumped up production, so far unscathed by Japan's devastating earthquake and tsunami.
The United States manufacturing sector grew at a marginally slower pace in March after accelerating at its fastest rate in nearly seven years the month before, data showed.
The global indicator, produced by JP Morgan with research and supply management organisations, combines survey data from around 20 countries including the United States, Japan, Germany, France, Britain, China and Russia.