ISM US factory PMI holds up better than expected in April
By Alexander Bueso
Date: Thursday 01 May 2025
(Sharecast News) - Factory sector activity in the US slowed a tad further in April, but not by as much as anticipated by some, the results of a closely followed survey showed.
The Institute for Supply Management's manufacturing sector Purchasing Managers' Index dipped from a reading of 49.0 for March to 48.7 in April (consensus: 48.0).
A key sub-index tracking new orders improved, from 45.2 to 47.2, but remained beneath the 50 point no change threshold.
Another sub-index linked to the prices paid by firms inched up from 69.4 to 69.8.
The sub-index for employment edged up from 44.7 to 46.5.
Harry Chambers at Capital Economics noted how the survey participants' responses showed that only orders from overseas were being held back by the uncertainty around tariffs.
As for the 'prices paid' by businesses, the sub-index was compatible with inflation hitting an annual rate of 4.0% by the middle of 2025, he added.
"[...] The path it takes will ultimately depend on whether the 90-day pause on reciprocal tariffs is made permanent. Respondents in the fabricated metal products industry noted that "there is a lot of concern about the inflationary impacts from tariffs. Domestic producers are charging more for everything because they can", which highlights the risk of second round effects emerging."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN