Manufacturing Fell Slightly in April but Remained Positive

Tempe, AZ, May 2, 2016—The April PMI registered 50.8%, a decrease of 1 percentage point from the March reading of 51.8%, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The New Orders Index registered 55.8%, a decrease of 2.5 percentage points from the March reading of 58.3%.

The Production Index registered 54.2%, 1.1 percentage points lower than the March reading of 55.3%.

The Employment Index registered 49.2%, 1.1 percentage points above the March reading of 48.1%.

Inventories of raw materials registered 45.5%, a decrease of 1.5 percentage points from the March reading of 47%.

The Prices Index registered 59%, an increase of 7.5 percentage points from the March reading of 51.5%, indicating higher raw materials prices for the second consecutive month.

Manufacturing registered growth in April for the second consecutive month, as 15 of our 18 industries reported an increase in new orders in April (up from 13 in March), and 15 of our 18 industries reported an increase in production in April (up from 12 in March).

Of the 18 manufacturing industries, 11 are reporting growth in April in the following order: Wood Products; Printing & Related Support Activities; Paper Products; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; Machinery; Computer & Electronic Products; Nonmetallic Mineral Products; and Food, Beverage & Tobacco Products.

The four industries reporting contraction in April are: Petroleum & Coal Products; Transportation Equipment; Miscellaneous Manufacturing; and Furniture & Related Products.