United States: Manufacturing PMI worsens in April
The Institute for Supply Management (ISM) manufacturing index fell to 55.4 in April from March’s 57.1. Consequently, the index remained above the 50.0 no-change threshold, but signaled a slower improvement in business conditions compared to the previous month.
April’s downturn was driven by slower growth in new orders, output, exports, inventories and employment. Meanwhile, inflation eased somewhat, in line with a lower inflation figure for the economy as a whole, while labor shortages persisted. Finally, business sentiment was upbeat due to strong demand expectations.
On labor market conditions, Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee, said:
“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment. In April, progress slowed in solving labor shortage problems at all tiers of the supply chain. Panelists reported higher rates of quits compared to previous months, with fewer panelists reporting improvement in meeting head-count targets.”