Association News

Economic activity in the manufacturing sector contracted in April for the second month in a row, the Institute for Supply Management reported in its latest Report on Business. The PMI registered 48.7 percent, down 0.3 percentage points from the March reading.

Manufacturing had shifted into positive territory for the first time in more than two years to start 2024, but dropped back into contraction after only two months of growth.

“Demand and production retreated and destaffing continued, as panelists’ companies responded to an unknown economic environment," said Timothy Fiore, chair of the ISM's manufacturing Business Survey Committee. "Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth."

Among other major indices, most remained in contraction territory. The New Orders Index was at 47.2 percent, though the rate of contraction slowed 2 percentage points in April from March. The Production Index declined 4.3 percentage points to 44 percent and the Backlog of Orders dipped 0.8 percentage points to 44.5 percent.

Though overall manufacturing was down, most sectors reported growth in April, including primary metals, machinery, and appliances and components. Fabricated metal products and transportation equipment were among the six industries reporting contraction.