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Economic news
01.05.2025

U.S. manufacturing activity contracts slightly less than anticipated in April - ISM

A report from the Institute for Supply Management (ISM) showed on Thursday that the U.S. manufacturing sector’s activity shrank in April for the second straight month.

The ISM's index of manufacturing activity - the manufacturing PMI - checked in at 48.7 per cent in April, down 0.3 percentage point from an unrevised March reading of 49.0 per cent. The latest reading indicated the steepest contraction in the U.S. factory sector since November 2024 (48.4). 

Economists had anticipated the indicator to fall to 48.0 per cent.

According to the report, the New Orders Index jumped 2.0 percentage points to 47.2 per cent last month but remained in contraction territory for the third consecutive month. Meanwhile, the Production Index decreased 4.3 percentage points to 44.0 per cent, slipping further into contraction territory. Elsewhere, the Employment Index increased 1.8 percentage points to 46.5 per cent, indicating that employment reduced for the third month in a row. The Supplier Deliveries Index rose 1.7 percentage points to 55.2 per cent, indicating that the delivery performance of suppliers to manufacturing organisations was slower for a fifth straight month in April. On the price front, the Prices Index went up 0.4 percentage point to 69.8 per cent, indicating raw materials prices rose for the seventh straight month after a decrease in September 2024. 

Commenting on the March data, Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, noted that demand and production retreated and de-staffing continued, as panellists' companies responded to an unknown economic environment. “Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth,” he added.

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