ISM Purchasing Managers' Index Declined to 49.2% in April

Tempe, AZ, May 1, 2024-The Manufacturing Purchasing Managers’ Index (PMI) registered 49.2% in April, down 1.1 percentage points from the 50.3% 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 48th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index moved back into contraction territory after one month of expansion, registering 49.1%, 2.3 percentage points lower than the 51.4% recorded in March. 

The April reading of the Production Index (51.3%) is 3.3 percentage points lower than March’s figure of 54.6%. 

The Prices Index registered 60.9%, up 5.1 percentage points compared to the reading of 55.8% in March. 

The Backlog of Orders Index registered 45.4%, down 0.9 percentage point compared to the 46.3% recorded in March. 

The Employment Index registered 48.6%, up 1.2 percentage points from March’s figure of 47.4%.

The Supplier Deliveries Index figure of 48.9% is on5 percentage point lower than the 49.9% 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 48.2%, the same reading as in March.

The New Export Orders Index reading of 48.7% is 2.9 percentage points lower than the 51.6% registered in March. 

The Imports Index continued in expansion territory, registering 51.9%, 1.1 percentage points lower than the 53% reported in March and February. 

In the last three months, the Imports Index has been at its highest levels since July 2022 (54.4%).

The nine manufacturing industries reporting growth in April-in order-are nonmetallic mineral products; printing & related support activities; primary metals; textile mills; electrical equipment, appliances & components; petroleum & coal products; transportation equipment; chemical products; and plastics & rubber products. The seven industries reporting contraction in April-in the following order-are miscellaneous manufacturing; machinery; furniture & related products; wood products; food, beverage & tobacco products; fabricated metal products; and paper products.