United States: Manufacturing index at lowest level in four months
May 1, 2013
In April, the ISM manufacturing index fell to 50.7% from 51.3% in March. The decline, which was in line with market expectations, drove the index to the lowest level since December 2012. That said, despite the decrease, the index remains above the 50 percentage-point threshold, which indicates that the manufacturing sector is growing.
Two out of five components of the index decreased over the previous month. Most notably, the employment index fell by 4.0 percentage points to 50.2%, while the inventories index lost 3.0 percentage points to 46.5% and now sits below the 50% threshold indicating a contraction in this category. On the other hand, new orders, the production index and the supplier deliveries category showed an improvement compared to the previous month.
FocusEconomics Consensus Forecast panellists project industrial output to rise 2.8%, which is up 0.2 percentage points from last month's forecast. For 2014, panellists see industrial production accelerating to a 4.5% expansion.