April Manufacturing ISM Report On Business Shows 83 Percent of Manufacturing Industries Reporting Growth

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in April for the 28th consecutive month, and the overall economy grew for the 71st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in April as the PMI registered 51.5 percent, the same reading as in March, indicating growth in manufacturing for the 28th consecutive month.

ISM's New Orders Index registered 53.5 percent in April, an increase of 1.7 percentage points when compared to the March reading of 51.8 percent, indicating growth in new orders for the 29th consecutive month.

ISM's Production Index registered 56 percent in April, which is an increase of 2.2 percentage points when compared to the 53.8 percent reported in March, indicating growth in production for the 32nd consecutive month.

ISM's Employment Index registered 48.3 percent in April, which is a decrease of 1.7 percentage points when compared to the 50 percent reported in March. The April reading of 48.3 percent is the lowest reading since September 2009 when the Employment Index registered 47.8 percent.

The delivery performance of suppliers to manufacturing organizations slowed in April at a slower rate as the Supplier Deliveries Index registered 50.1 percent. This month's reading is 0.4 percentage point lower than the 50.5 percent reported in March.

The Inventories Index registered 49.5 percent in April, which is 2 percentage points lower than the 51.5 percent registered in March, indicating raw materials inventories are contracting in April following three consecutive months of growth in inventories.

ISM's Backlog of Orders Index registered 49.5 percent in April, the same reading as reported in March, indicating contraction in order backlogs for the second consecutive month. Of the 85 percent of respondents who measure their backlog of orders, 25 percent reported greater backlogs, 26 percent reported smaller backlogs, and 49 percent reported no change from March.

Of the 18 manufacturing industries, 15 are reporting growth in April in the following order: Nonmetallic Mineral Products; Plastics & Rubber Products; Wood Products; Printing & Related Support Activities; Furniture & Related Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Paper Products; Miscellaneous Manufacturing; Machinery; Transportation Equipment; Textile Mills; Electrical Equipment, Appliances & Components; Chemical Products; and Primary Metals. The two industries reporting contraction in April are: Apparel, Leather & Allied Products; and Computer & Electronic Products.

Keywords: Automation, Manufacturing, Process Industries, Discrete Industries, Supply Management, PMI, ISM, ARC Advisory Group.