Purchasing Managers Index Declined to 48.7% in April
Tempe, AZ, May 1, 2025-The Manufacturing Purchasing Managers Index (PMI) registered 48.7% in April, 0.3 percentage point lower compared to the 49% recorded in March, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The overall economy continued in expansion for the 60th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3%, over a period of time, generally indicates an expansion of the overall economy.)
The New Orders Index contracted for the third month in a row following a three-month period of expansion; the figure of 47.2% is two percentage points higher than the 45.2% recorded in March.
The April reading of the Production Index (44%) is 4.3 percentage points lower than March’s figure of 48.3%. The index returned to contraction last month after two months of expansion preceded by eight months of contraction.
The Prices Index remained in expansion (or ‘increasing’) territory, registering 69.8%, up 0.4 percentage point compared to the reading of 69.4% in March.
The Backlog of Orders Index registered 43.7%, down 0.8 percentage point compared to the 44.5% recorded in March.
The Employment Index registered 46.5%, up 1.8 percentage points from March’s figure of 44.7%.
The Supplier Deliveries Index indicated a continued slowing of deliveries, registering 55.2%, 1.7 percentage points higher than the 53.5% recorded in March. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
The Inventories Index registered 50.8%, down 2.6 percentage points compared to March’s reading of 53.4%. The index indicated expansion for a second consecutive month after six months of contraction.
The New Export Orders Index reading of 43.1% is 6.5 percentage points lower than the reading of 49.6% registered in March. The Imports Index dropped into contraction in April, registering 47.1%, three percentage points lower than March’s reading of 50.1%.
The 11 manufacturing industries reporting growth in April-listed in order-are apparel, leather & allied products; petroleum & coal products; plastics & rubber products; electrical equipment, appliances & components; textile mills; computer & electronic products; nonmetallic mineral products; miscellaneous manufacturing; machinery; chemical products; and primary metals. the six industries reporting contraction in april, in order, are: wood products; furniture & related products; paper products; food, beverage & tobacco products; transportation equipment; and fabricated metal products.