The US manufacturing economic expansion slowed in April as supply and labor difficulties remain, the Institute for Supply Management reported today. Its Manufacturing PMI measure of economic activity in US manufacturing fell to a reading of 60.7% in April from 64.7% in March. Readings above 50% indicate expansion, and April’s figure indicates expansion in the overall economy for the 11th month in a row after contraction in April 2020 — albeit at a slower pace than March.
Survey committee members reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to Covid-19 impacts limiting availability of parts and materials.
Of the six big manufacturing sectors, four expanded: Fabricated metal products; food, beverage and tobacco products; transportation equipment; and computer and electronic products.
The PMI is based on the diffusion indexes of five indexes with equal weights: New orders, production, employment, supplier deliveries and inventories.
Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee, said the 60.7% reading for the Manufacturing PMI corresponds to a 5% increase in real gross domestic product on an annualized basis.
Source: Staffing Industry Analysts
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