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Manufacturing activity decreased in April, according to the Institute for Supply Management, reflecting challenges in supply chains and the labor force, as well as soaring costs and uncertainties related to the war in Ukraine.

The numbers: The ISM® Manufacturing Purchasing Managers’ Index® dipped from 57.1 in March to 55.4 in April, the lowest since July 2020.

• New orders were down to 53.5 from 53.8.
• Production was down to 53.6 from 54.5.
• Exports were down to 52.7 from 53.2.
• Employment was down to 50.9 from 56.3.

Cost pressures: The index for prices declined slightly, to 84.6 in April from 87.1 in March.

• However, the index for supplier deliveries went up to 67.2 from 65.4, reflecting longer delivery wait times.

The NAM’s take: “Customer inventories, which were up to 37.1 from 34.1, improved slightly for the month, but remained too low,” said NAM Chief Economist Chad Moutray. “This should be a positive for future production if orders accelerate further, as it would necessitate additional manufacturing activity to meet that demand.”