US Manufacturing Growth Eases to 9-Month Low: ISM


The Institute for Supply Management’s Manufacturing PMI in the US fell to 57.3 in April 2018 from the previous month's 59.3, and missing market expectations of 58.3. The reading pointed to the weakest pace of expansion in the manufacturing sector since last July, as new orders, production and employment rose at softer rates.

4 of 6 main components showed month-over-month decreases: new orders (down 0.7 percentage points to 61.2); production (down 3.8 percentage point to 57.2); employment (down 3.1 percentage points to 54.2); and inventories (down 2.6 percentage points to 52.9).

"Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 or above for the 12th straight month, and the Customers’ Inventories Index remaining at low levels. The Backlog of Orders Index continued expanding, with its highest reading since May 2004, when it registered 63 percent. Consumption, described as production and employment, continues to expand, but has been restrained by labor and skill shortages. Inputs, expressed as supplier deliveries, inventories and imports, declined overall, due primarily to inventory reductions likely led by supplier performance restrictions. Lead time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue. Export orders remained strong. The Prices Index is at its highest level since April 2011, when it registered 82.6 percent. In April, price increases occurred across 17 of 18 industry sectors. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle."

Meanwhile, the prices sub-index rose 1.2 percentage points to 79.3 percent in March, the highest level since April 2011, indicating higher raw materials prices for the 26th consecutive month. Also, the supplier deliveries sub-index increased 0.5 percentage points to 61.1.

Of the 18 manufacturing industries, 17 reported growth in April, in the following order: Wood Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Transportation Equipment; Furniture & Related Products; Paper Products; Machinery; Primary Metals; Nonmetallic Mineral Products; Chemical Products; Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Printing & Related Support Activities; Miscellaneous Manufacturing; and Apparel, Leather & Allied Products. No industry reported a decrease in PMI® in April compared to March.

US Manufacturing Growth Eases to 9-Month Low: ISM


ISM | Joana Ferreira | joana.ferreira@tradingeconomics.com
5/1/2018 2:11:21 PM