ISM: New Orders, Production and Employment Growing

Tempe, AZ, May 1, 2007--Economic activity in the manufacturing sector expanded in April for the third consecutive month, while the overall economy grew for the 66th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "Manufacturing activity increased in April as the PMI reflects accelerating growth for the month. New Orders and Production improved significantly as did Employment. Manufacturers are now in their ninth month of inventory reduction, so supply chains are generally in balance. On the negative side, prices continue to rise at a rapid rate with metals and energy being the areas of greatest concern to buyers."

Top Performing Industries

The 11 industries reporting growth in April — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Machinery; Chemical Products; Transportation Equipment; Computer & Electronic Products; Plastics & Rubber Products; Fabricated Metal Products; and Furniture & Related Products.

What Respondents are Saying ...

"The economy seems strong, business is good here." (Fabricated Metal Products)

"Detecting contractor manpower shortages." (Chemical Products)

"High corn prices could have long-term impact on soft drink industry." (Food, Beverage & Tobacco Products)

"First quarter business was strong despite gloomy 2006 forecasts for the 2007 diesel engine industry." (Machinery)

"Business remains at or above budget in all markets." (Primary Metals)