ISM Manufacturing PMI Below Expectations

The Institute for Supply Management’s Manufacturing PMI came in at 50.8 in April of 2016, down from 51.8 in March and below market expectations of 51.4. Manufacturing activity in the US expanded for the second consecutive month although growth slowed as production, new orders and inventories declined while employment remained negative, suggesting the recovery is still fragile.

The New Orders Index registered 55.8 percent, a decrease of 2.5 percentage points from the March reading of 58.3 percent. 
The Production Index registered 54.2 percent, 1.1 percentage points lower than the March reading of 55.3 percent. 

The Employment Index registered 49.2 percent, 1.1 percentage points above the March reading of 48.1 percent. 

Inventories of raw materials registered 45.5 percent, a decrease of 1.5 percentage points from the March reading of 47 percent. 

The Prices Index registered 59 percent, an increase of 7.5 percentage points from the March reading of 51.5 percent, indicating higher raw materials prices for the second consecutive month. 

Of the 18 manufacturing industries, 11 are reporting growth in April in the following order: Wood Products; Printing & Related Support Activities; Paper Products; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; Machinery; Computer & Electronic Products; Nonmetallic Mineral Products; and Food, Beverage & Tobacco Products. The four industries reporting contraction in April are: Petroleum & Coal Products; Transportation Equipment; Miscellaneous Manufacturing; and Furniture & Related Products.

ISM Manufacturing PMI Below Expectations

ISM | Joana Taborda |
5/2/2016 3:08:15 PM