According to a report issued by Susan Spence, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, U.S. manufacturing activity expanded for the fourth consecutive month in April, with the ISM® Manufacturing PMI® holding at 52.7 percent, unchanged from March.
The reading signals continued, steady growth across the sector, while the broader U.S. economy has now remained in expansion territory for 18 straight months.
“The Manufacturing PMI® registered 52.7 percent in April, the same reading as March. The overall economy continued in expansion for the 18th month in a row. (A Manufacturing PMI® above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the fourth straight month after four straight readings in contraction, registering 54.1 percent, up 0.6 percentage point compared to March’s figure of 53.5 percent.
“The April reading of the Production Index (53.4 percent) is 1.7 percentage points lower than March’s reading of 55.1 percent. The Prices Index remained in expansion (or ‘increasing’ territory), registering 84.6 percent, a 6.3-percentage point jump from March’s reading of 78.3 percent. In the last three months, the Prices Index has increased 25.6 percentage points to reach its highest level since April 2022 (84.6 percent).
“The Backlog of Orders Index registered 51.4 percent, down 3 percentage points compared to the 54.4 percent recorded in March. The Employment Index registered 46.4 percent, down 2.3 percentage points from March’s figure of 48.7 percent,” says Spence.
“The Supplier Deliveries Index indicated slowing performance for the fifth month in a row after one month in ‘faster’ territory. The reading of 60.6 percent is up 1.7 percentage points from the 58.9 percent recorded in March; the index has risen in each of the last five months, meaning delivery times are increasingly slowing. (Supplier Deliveries is the only ISM® PMI® Reports index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)”
Inventories remained slightly below expansion levels, though improving, while imports edged down and exports continued to soften. Prices, meanwhile, surged again, reaching their highest level since April 2022 and reflecting ongoing cost pressure across the supply chain.
Spence noted that production remained in expansion for the sixth straight month, though at a slower pace, while employment continued to contract as companies manage headcount through layoffs and attrition rather than hiring.
She also pointed to broader sentiment across the sector, with respondents citing continued uncertainty tied to geopolitical tensions and trade policy.
