Manufacturing Sector Growth Slows in April

The ISM Manufacturing Index registered 57.3 points in April, down 2.0 percentage points from the previous month, according to the Institute for Supply Management. April’s reading indicates the twentieth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, seventeen reported growth, while none reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted.

The Employment Index slid 3.1 points to 54.2 in April, indicating expansion for the nineteenth consecutive month. Twelve industries reported expansion, while three industry reported a decrease in employment.

The New Orders Index decreased 0.7 point to 61.2 in April, indicating growth for the twenty-eighth consecutive month. Sixteen industries reported expansion, while one reported a decrease in employment.

Export orders decreased 1.0 point to 57.7, indicating growth for the twenty-sixth consecutive month. Fourteen industries reported growth while none reported a decrease in new export orders.

The Inventories Index registered 52.9 points, down 2.6 points from the previous month. Eight industries reported higher inventories, while four reported a decrease.

Read the ISM release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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