The Institute for Supply Management reported that the Manufacturing PMI rose to 47.1% in April, 0.8 percentage points higher than the recorded 46.3% in March. While up from last month’s 46.3%, it is the fifth consecutive month of contraction for the Manufacturing PMI.
Here’s the breakdown of the April PMI:
- New Orders Index: 45.7%, a 1.4 percentage point increase month-over-month
- Production Index: 48.9%, a 1.1 percentage point increase month-over-month
- Prices Index: 53.2%, a 4 percentage point increase month-over-month
- Backlog of Orders Index: 43.1%, a 0.8 percentage point decrease month-over-month
- Employment Index: 50.2%, a 3.3 percentage point increase month-over-month
- Supplier Deliveries Index: 44.6%, a 0.2 percentage point decrease month-over-month
- Inventories Index: 46.3%, a 1.2 percentage point decrease month-over-month
- New Export Orders Index: 49.8%, a 2.2 percentage point increase month-over-month
- Imports Index: 49.9%, a 2 percentage point increase month-over-month
“The U.S. manufacturing sector contracted again; however, the Manufacturing PMI improved compared to the previous month, indicating slower contraction. The April composite index reading reflects companies continuing to manage outputs to better match demand for the first half of 2023 and prepare for growth in the late summer/early fall period,” said Timothy R. Fiore, ISM Chairman.
Five manufacturing industries saw growth in April:
- Petroleum & Coal
- Printing and Related Support Activities
- Apparel, Leather and Allied Products
- Fabricated Metal Products
Furniture and Related Products; Wood Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances and Components; Plastics & Rubber Products; Chemical Products; Machinery; Primary Metals; Computer and Electronic Products; Food, Beverage and Tobacco Products; and Miscellaneous Manufacturing all reported a decrease in April.