ISM Index at 48.6 in April, Unchanged From March

The overall economy grew for the 78th straight month, while the manufacturing sector remained in contraction for the third month, the Institute for Supply Management reported yesterday.

According to ISM’s monthly report on business, the ISM index remained at 48.6 in April, unchanged from March.

Economists polled by IFR Markets predicted the index would slip to 48.0.

“The manufacturing sector failed to grow in April as the PMI fell below 50% for the third consecutive month,” said Norbert J. Ore, chairman of the Institute of Supply Management’s manufacturing business survey committee. “Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates. Bright spots this month are the growth in the backlog of orders index after six consecutive months of decline, continued strength in new export orders, and a reduction in customers’ inventories.”

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER