The Institute for Supply Management said some manufacturers are worried about whether their Asian partners can deliver reliably this summer.
This is the second monthly decline in a row. It reflects spending rotating back to services like travel, dining out, and recreation.
Government data released Friday showed that in March, consumer spending on services increased by the most in eight months.
Not so good news for construction spending though. It barely rose in March, just a tenth of a percent, quite a bit below expectations.
NTD spoke with Nicole Wolter, CEO of HM Manufacturing, to hear her thoughts.