The April PMI registered 57.3 percent, the second consecutive monthly decrease and down two percentage points from the March reading of 59.3 percent. That said, February’s PMI, which came in at 60.8 percent, was the highest recorded in the past 12 months.
A reading above 50 percent indicates that the manufacturing industry generally is growing, while a reading below 50 percent indicates general contraction.
Here are five additional takeaways from the April report:
The April PMI indicates the 20th straight month of growth in the manufacturing sector. The strong growth was “led by continued expansion in new orders, production activity, employment and inventories, with suppliers continuing to struggle delivering to demand,” said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, at the report’s release Tuesday. The reading also indicates overall economy growth for the 108th consecutive month.
The PMI’s production index fell below 60 for the first time in 10 months. The production index decreased by 3.8 percentage points to 57.2 in April. “Production expansion continues,” noted Fiore, “Labor constraints and supply chain disruptions continue to prevent or limit maximum production potential.” Fifteen industries reported growth in April, with only paper products showing a decline.
