Wednesday, May 1, 2013

ISM Manufacturing Continues Declining Trend in April

The ISM manufacturing index fell to 50.7 in April, after sharply falling in March as well. While still above the expansionary threshold of 50, March’s reading is the lowest so far in 2013. Currently the index is at its lowest point since December.

Details of the report were mixed, with production and new orders rising. Production grew 1.3 to 53.5 and new orders increased to 52.3.

Not all of the details were positive however. Imports rose to 55.0 and new export orders shrank by 2.0, widening the trade gap. The employment index dropped 4.0 points, settling at 50.2, its lowest level since November.

Inventory growth continued to fall in April, leading the gap between inventories and new orders – a proxy for future production – to 5.8 index points.

Read the ISM release.

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