The overall economy grew for the fifty-ninth straight time, while the manufacturing sector expanded for the eleventh consecutive month, the Institute for Supply Management reported Thursday.
According to the ISM's monthly report on business, the ISM index grew to 54.9 in April from 53.7 in March.
Economists polled by Thomson Reuters predicted the index would rise to 54.2.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index decreased to 56.5 from 59.0. The employment index rose to 54.7 from 51.1.
The production index dipped to 55.7 from 55.9, the new orders index held at 55.1; the supplier deliveries index grew to 55.9 from 54.0; the export orders index climbed to 57.0 from 55.5; and the imports index grew to 58.0 from 54.5.
The inventories index rose to 53.0 from 52.5; the customers' inventories index stayed at 42.0; and backlog of orders slipped to 55.5 from 57.5.
Respondents' comments included:
"Business is strong and continues to grow in my industry." (Textile Mills)
"Winter weather has slowed order intake but not inquiries. We think there is pent-up demand waiting for the weather to break." (Fabricated Metal Products)
"U.S. remains stable, Asia is increasing in sales dramatically and Europe remains soft." (Transportation Equipment)
"Overall business is up. Hiring is also up. Skilled trades in short supply." (Transportation Equipment)
"Slight improvement in defense spending and manufacturing." (Computer & Electronic Products)
"Export demand picking up but seems to have no leverage to raise prices. Margins are very thin, and concerned about Chinese slowdown effect on our business." (Chemical Products)
"China returned from their New Year holiday with brisk demand. Domestic markets are also doing well." (Wood Products)
"Softening in bookings, shipments at same level." (Electrical Equipment, Appliances & Components)
"Spring of 2014 is 3 to 4 percent better than Spring of 2013 for our company." (Machinery)
"Russia may stop importing medical devices manufactured completely outside of Russia. Would have big negative impact - 5 to10 percent lost revenue." (Miscellaneous Manufacturing)
