Factory sector activity slows by more than expected in April, ISM says
By Alexander Bueso
Date: Wednesday 01 May 2024
(Sharecast News) - Factory sector activity in the U.S. declined unexpectedly last month, even as price pressures picked up, the results of a closely-followed survey revealed.
The Institute for Supply Management's manufacturing sector Purchasing Managers' Index slipped from a reading of 50.3 for February to 49.2 in March.
Consensus had been for a reading of 50.1.
A subindex for production fell back by the most, from 54.6 to 51.3, while that for new orders slipped from 51.4 to 49.1.
Another tracking the prices paid by companies however jumped from 55.8 to 60.9.
For both the headline PMI index as well as the various subindices, the 50 point mark was the threshold that separated an expansion from a contraction.
Readings successively below or above 50 points also denoted greater rates of decline or growth.
A purchasing manager from the Computer & Electronic Products sector cited by ISM said the recovery in China remained "slower" than hoped for, alongside ongoing macroeconomic uncertainty in Europe, the Middle East, and domestically in the U.S..
Managers from the Machinery and Fabricated Metal Products sectors meanwhile spoke of softer or slowing demand.
A separate factory PMI, from S&P Global, also fell, from 51.9 in March to 50.0 for April.
However, here the survey compiler said that there were "encouraging signs" with a fall in new orders mainly the result of factories adjusting inventories of inputs.
Furthermore, consumer goods producers reported stronger demand, hinting at the fact that " the
broader consumer-driven economic upturn remains
intact."
Price gains meanwhile slowed versus the month before, although the rate of increase remained "elevated".
-- More to follow --
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