Manufacturing Continues To Contract in April

Washington, DC, May 2, 2008--Manufacturing contracted in April for the third straight month, according to the Institute for Supply Management.

The ISM index was steady at 48.6 percent in April, the same as in March.

Readings under 50 percent indicate more firms are contracting than expanding.

Seven of 18 industries were growing in April, paced by electronics, printing, paper and transportation equipment.

"Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates," the ISM said in a press release.

The new-orders index was steady at 46.5 percent in April, but has been below 50 percent for five months.

The employment index fell to a five-year low of 45.4 percent in April from 49.2 percent in March.

The prices index rose to 84.5 percent in April from 83.5 percent in March, with 71 percent of companies reporting paying higher prices, the largest percentage in four years.

Export orders rose to 57.5 percent, manufacturing's major strength.