ISM’s April PMI Hits 60.4; Economy Up for 12 Months

The overall U.S. economy grew for the 12th straight time following seven months of contraction, while the manufacturing sector expanded for the ninth time in the wake of 18 months of contraction, the Institute for Supply Management reported yesterday.

According to the ISM’s monthly report on business, the Purchasing Managers Index jumped to 60.4 in April from 59.6 in March.

Economists polled by Thomson Reuters predicted the index would rise to a level of 60.0.

“The rate of growth as indicated by the PMI is the fastest since June 2004,” said Norbert J. Ore, chairman of ISM’s manufacturing business survey committee. “Manufacturers continue to see extraordinary strength in new orders.

“The signs for employment in the sector continue to improve as the Employment Index registered its fifth consecutive month of growth,” he continued. “Overall, the recovery in manufacturing continues quite strong, and the signs are positive for continued growth.”

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