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The report was issued today by Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The April PMI® registered 54.8 percent, a decrease of 2.4 percentage points from the March reading of 57.2 percent. The New Orders Index registered 57.5 percent, a decrease of 7 percentage points from the March reading of 64.5 percent. The Production Index registered 58.6 percent, 1 percentage point higher than the March reading of 57.6 percent.
The Employment Index registered 52 percent, a decrease of 6.9 percentage points from the March reading of 58.9 percent. Inventories of raw materials registered 51 percent, an increase of 2 percentage points from the March reading of 49 percent. The Prices Index registered 68.5 percent in April, a decrease of 2 percentage points from the March reading of 70.5 percent, indicating higher raw materials prices for the 14th consecutive month, but at a slower rate of increase in April compared with March. Comments from the panel generally reflect stable to growing business conditions; with new orders, production, employment and inventories of raw materials all growing in April over March.”
Of the 18 manufacturing industries, 16 reported growth in April in the following order: Electrical Equipment, Appliances & Components; Textile Mills; Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; Primary Metals; Miscellaneous Manufacturing; Computer & Electronic Products; Petroleum & Coal Products; and Transportation Equipment. The only industry that reported contraction in April compared to March is Apparel, Leather & Allied Products.
WHAT RESPONDENTS ARE SAYING …
- “For [the] first time in a long time, revenue was up in Q1 year-over-year. Our customers’ businesses are starting to show sustained health.” (Apparel, Leather & Allied Products)
- “Seeing increased orders and new projects.” (Chemical Products)
- “Bookings are slow; however, we did receive a very large government order.” (Computer & Electronic Products)
- “Business is definitely improving. Profit margins are increasing.” (Fabricated Metal Products)
- “Ongoing market strength. While world/political headlines cause personal anxiety, business conditions remain solid.” (Miscellaneous Manufacturing)
- “The poultry market continues to be stronger than anticipated.” (Food, Beverage & Tobacco Products)
- “Continuing to source more raw materials locally and reduce exposure outside U.S.” (Machinery)
- “Military and government spending is remaining strong. Commercial business has been flat to slightly down.” (Transportation Equipment)
- “Our business and outlook are [strong]. We are seeing price increases from suppliers in many categories.” (Plastics & Rubber Products)
- “Business is solid. Pricing pressures on commodities.” (Furniture & Related Products)
| MANUFACTURING AT A GLANCE April 2017 | ||||||
|---|---|---|---|---|---|---|
Index | Series Index Apr | Series Index Mar | Percentage Point Change | Direction | Rate of Change |
Trend* (Months) |
| PMI® | 54.8 | 57.2 | -2.4 | Growing | Slower | 8 |
| New Orders | 57.5 | 64.5 | -7.0 | Growing | Slower | 8 |
| Production | 58.6 | 57.6 | +1.0 | Growing | Faster | 8 |
| Employment | 52.0 | 58.9 | -6.9 | Growing | Slower | 7 |
| Supplier Deliveries | 55.1 | 55.9 | -0.8 | Slowing | Slower | 12 |
| Inventories | 51.0 | 49.0 | +2.0 | Growing | From Contracting | 1 |
| Customers’ Inventories | 45.5 | 47.0 | -1.5 | Too Low | Faster | 7 |
| Prices | 68.5 | 70.5 | -2.0 | Increasing | Slower | 14 |
| Backlog of Orders | 57.0 | 57.5 | -0.5 | Growing | Slower | 3 |
| New Export Orders | 59.5 | 59.0 | +0.5 | Growing | Faster | 14 |
| Imports | 55.5 | 53.5 | +2.0 | Growing | Faster | 3 |
| OVERALL ECONOMY | Growing | Slower | 95 | |||
| Manufacturing Sector | Growing | Slower | 8 | |||
Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
