ISM® Manufacturing index Decreased to 48.7% in April
(Posted with permission). The ISM manufacturing index indicated expansion. The PMI® was at 48.7% in April, down from 49.0% in March. The employment index was at 46.5%, up from 44.7% the previous month, and the new orders index was at 47.2%, up from 45.2%. From ISM: Manufacturing PMI® at 48.7% April 2025 Manufacturing ISM® Report On Business®Economic activity in the manufacturing sector contracted in April for the second month in a row, following a two-month expansion preceded by 26 straight months of contraction, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®. The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The Manufacturing PMI® registered 48.7 percent in April, 0.3 percentage point lower compared to the 49 percent recorded in March. The overall economy continued in expansion for the 60th month after one month of contraction in April 2020. (A Manufacturing PMI® above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index contracted for the third month in a row following a three-month period of expansion; the figure of 47.2 percent is 2 percentage points higher than the 45.2 percent recorded in March. The April reading of the Production Index (44 percent) is 4.3 percentage points lower than March’s figure of 48.3 percent. The index returned to contraction last month after two months of expansion preceded by eight months of contraction. The Prices Index remained in expansion (or ‘increasing’) territory, registering 69.8 percent, up 0.4 percentage point compared to the reading of 69.4 percent in March. The Backlog of Orders Index registered 43.7 percent, down 0.8 percentage point compared to the 44.5 percent recorded in March. The Employment Index registered 46.5 percent, up 1.8 percentage points from March’s figure of 44.7 percent. “The Supplier Deliveries Index indicated a continued slowing of deliveries, registering 55.2 percent, 1.7 percentage points higher than the 53.5 percent recorded in March. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 50.8 percent, down 2.6 percentage points compared to March’s reading of 53.4 percent. The index indicated expansion for a second consecutive month after six months of contraction. “The New Export Orders Index reading of 43.1 percent is 6.5 percentage points lower than the reading of 49.6 percent registered in March. The Imports Index dropped into contraction in April, registering 47.1 percent, 3 percentage points lower than March’s reading of 50.1 percent.”emphasis addedThis suggests manufacturing contracted in April. This was slightly above the consensus forecast, however new export orders were weak and prices very strong.
(Posted with permission). The ISM manufacturing index indicated expansion. The PMI® was at 48.7% in April, down from 49.0% in March. The employment index was at 46.5%, up from 44.7% the previous month, and the new orders index was at 47.2%, up from 45.2%.
From ISM: Manufacturing PMI® at 48.7% April 2025 Manufacturing ISM® Report On Business®
From ISM: Manufacturing PMI® at 48.7% April 2025 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector contracted in April for the second month in a row, following a two-month expansion preceded by 26 straight months of contraction, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.This suggests manufacturing contracted in April. This was slightly above the consensus forecast, however new export orders were weak and prices very strong.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:
“The Manufacturing PMI® registered 48.7 percent in April, 0.3 percentage point lower compared to the 49 percent recorded in March. The overall economy continued in expansion for the 60th month after one month of contraction in April 2020. (A Manufacturing PMI® above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index contracted for the third month in a row following a three-month period of expansion; the figure of 47.2 percent is 2 percentage points higher than the 45.2 percent recorded in March. The April reading of the Production Index (44 percent) is 4.3 percentage points lower than March’s figure of 48.3 percent. The index returned to contraction last month after two months of expansion preceded by eight months of contraction. The Prices Index remained in expansion (or ‘increasing’) territory, registering 69.8 percent, up 0.4 percentage point compared to the reading of 69.4 percent in March. The Backlog of Orders Index registered 43.7 percent, down 0.8 percentage point compared to the 44.5 percent recorded in March. The Employment Index registered 46.5 percent, up 1.8 percentage points from March’s figure of 44.7 percent.
“The Supplier Deliveries Index indicated a continued slowing of deliveries, registering 55.2 percent, 1.7 percentage points higher than the 53.5 percent recorded in March. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index registered 50.8 percent, down 2.6 percentage points compared to March’s reading of 53.4 percent. The index indicated expansion for a second consecutive month after six months of contraction.
“The New Export Orders Index reading of 43.1 percent is 6.5 percentage points lower than the reading of 49.6 percent registered in March. The Imports Index dropped into contraction in April, registering 47.1 percent, 3 percentage points lower than March’s reading of 50.1 percent.”
emphasis added
