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TEMPE – The Institute for Supply Management™ has reported that the US manufacturing sector saw an increase of 3.8% to a PMI of 54.7, while the overall economy grew for the 66th consecutive month.
The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "Manufacturing activity increased in April as the PMI reflects accelerating growth for the month. New Orders and Production improved significantly as did Employment. Manufacturers are now in their ninth month of inventory reduction, so supply chains are generally in balance. On the negative side, prices continue to rise at a rapid rate with metals and energy being the areas of greatest concern to buyers."
TOP PERFORMING INDUSTRIES
The 11 industries reporting growth in April — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Machinery; Chemical Products; Transportation Equipment; Computer & Electronic Products; Plastics & Rubber Products; Fabricated Metal Products; and Furniture & Related Products.
ABOUT PMI
A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
A PMI in excess of 41.9 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates that both the overall economy and the manufacturing sector are growing. "The past relationship between the PMI and the overall economy indicates that the PMI average for January through April (51.8 percent) corresponds to a 3.1 percent increase in real gross domestic product (GDP) annually. In addition, if the PMI for April (54.7) is annualized, it corresponds to a 4 percent increase in real GDP annually."
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