The overall economy grew for the eighty-third straight time, while the manufacturing sector expanded for the second month in a row, the Institute for Supply Management reported Monday.
According to the ISM’s monthly report on business, the ISM index decreased to 50.8 in April from 51.8 in March.
Economists polled by Thomson Reuters predicted the index would be 51.4.
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 gained to 59.0 from 51.5. The employment index rose to 49.2 from 48.1.
The production index dropped to 54.2 from 55.3, the new orders index fell to 55.8 from 58.3; the supplier deliveries index declined to 49.1 from 50.2; the export orders index gained to 52.5 from 52.0; and the imports index increased to 50.0 from 49.5.
The inventories index decreased to 45.5 from 47.0; the customers’ inventories index slid to 46.0 from 49.0; and backlog of orders dipped to 50.5 from 51.0.
Respondents’ comments included:
“We are still running at capacity. New CapEx for $30 million to increase capacity, but will not be online until 2017.” (Food, Beverage & Tobacco Products)
“Remaining a bit sluggish overall although showing signs of a pickup in some areas.” (Chemical Products)
“While oil prices have recovered slightly, the industry as a whole continues to struggle greatly.” (Computer & Electronic Products)
“Steel prices are increasing, but it is supply-side driven. General economy is plugging along with no big changes. Kind of lackluster.” (Fabricated Metal Products)
“Auto industry is still going strong.” (Machinery)
“Sales are firming at the reduced levels we’ve seen this year. We think we have hit a bottom.” (Transportation Equipment)
“Business conditions are stable. Sales and production rates are steady to improving.” (Miscellaneous Manufacturing)
“Activity increasing as we move to our busy season.” (Printing & Related Support Activities)
“Market is starting to pick up as expected.” (Wood Products)
