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United States PMI April 2021

United States: ISM manufacturing index falls in April, but remains upbeat nonetheless

The Institute for Supply Management (ISM) manufacturing index decreased to 60.7 in April from 64.7 in March, and missed market expectations of a 65.0 reading. Nevertheless, the index remained comfortably above the 50-threshold that separates expansion from contraction in the manufacturing sector.

April’s abatement was the result of weaker growth in new orders, production and employment levels relative to the previous month. Meanwhile, backlogs of work increased in April, while new export orders rose at a quicker pace. On the price front, input prices continued to rise on the back of higher raw material prices and at a higher price compared to the month prior.

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