May 1, 2014
New Orders, Employment and Production Growing; Inventories Growing; Supplier Deliveries Slowing
Economic activity in the manufacturing sector expanded in April for the 11th consecutive month, and the overall economy grew for the 59th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
Manufacturing expanded in April as the PMI registered 54.9 percent, an increase of 1.2 percentage points when compared to March’s reading of 53.7 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
A PMI in excess of 43.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the April PMI indicates growth for the 59th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 11th consecutive month. Holcomb stated, “The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (53.3 percent) corresponds to a 3.3 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for April (54.9 percent) is annualized, it corresponds to a 3.9 percent increase in real GDP annually.”
Of the 18 manufacturing industries, 17 are reporting growth in April.
Source: Institute For Supply Management
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