The Manufacturing Purchasing Managers’ Index (PMI), which measures the performance of the managing sector based on five weights: New Orders (30%), Output (25%), Employment (20%), Supplier Delivery Times (15%) and Stock of Items Purchased (10%), decreased in the US In April.
A reading above 50 indicates an expansion of the manufacturing sector, while below 50 represents a contraction. April PMI in the US decreased to 54.2 from 55.7 in March. Manufacturing PMI in the US averaged 54.24 from 2012 until 2015, reaching an all-time high of 57.9 in August 2014 and a record low of 51 in November 2012. This rate of expansion was the slowest so far in 2015.
Japan, China, France, Germany and the US all reported readings that decreased from expectations. Japan, China and France had readings below 50. This is a continued downward trend for Japan and China. Numbers were a reversal for Germany and the US, which had been producing some great numbers so far this year.
US survey respondents generally cited softer new business gains, especially from international markets. This contributed to a softer increase in pre-production inventories. Supplier lead times lengthened for the twenty-second month, with a number of companies noting ongoing transportation delays at west coast ports at the beginning of the year.
Sources: Bloomberg, Trading Economics
Related posts
