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Global Manufacturing PMI Decreases in April
May 7, 2009
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Economic activity in the United States manufacturing sector failed to grow in April for the 15th consecutive month, and the overall economy contracted for the seventh consecutive month, according to the Institute for Supply Management's (ISM) Report On Business.

According to the report, Appliances and Components and Computer and Electronic products were among the industries showing a contraction in April. Miscellaneous Manufacturing was the only manufacturing industry that reported growth.

The PMI registered 40.1%, which is 3.8 percentage points higher than the 36.3% reported in March. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

ISM's New Orders Index registered 47.2% in April, 6 percentage points higher than the 41.2%registered in March. Appliances and Components and Computer and Electronic Products were among the industries that showed growth in new orders in April.

ISM's Production Index registered 40.4% in April, an increase of 4 percentage points from March's reading of 36.4%. Computer and Electronic Products was among the industries showing growth in production in April.

The Institute for Supply Management (ISM) releases the Manufacturing and Non-Manufacturing ISM Report On Business each month. The reports are considered by many to be leading economic indicators.

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