Input Stories

Business activity in the U.S. manufacturing sector declined in April for the second consecutive month, and at a slightly faster pace than the prior month (FX Street).

What’s going on: “[T]he ISM Manufacturing Purchasing Managers Index (PMI) edg[ed] lower to 48.7 from 49 in March. This reading came in better than the market expectation of 48.”

• The Employment Index inched up to 46.5 from 44.7 in the same period, “pointing to a decrease in the sector’s payrolls at a softening pace.”
• The Prices Paid Index, the inflation part of the survey, increased to 69.8 in April from 69.4 the previous month, the highest reading since June 2022 (Institute for Supply Management).
• The Supplier Deliveries Index showed a continued slowdown in deliveries, and the New Export Orders Index indicated a dramatic decline.

What grew: Of the six largest manufacturing sectors, four—petroleum and coal products; machinery; computer and electronic products; and chemical products—reported an increase in new orders. However, the percentage of respondents noting “higher” and “lower” new orders both rose in April, which is unusual and indicates a period of transition.