April manufacturing output slides after growing in March

Coming off of its first growth month in March, following a 16-month stretch of contraction going back to October 2022, manufacturing output in April reverted back to contraction, albeit slightly, according to the new edition of the Manufacturing Report on Business, which was issued today by the Institute for Supply Management (ISM).

The report’s benchmark metric, the PMI, came in at 49.2 (a reading of 50 or higher indicates growth), down 1.1% from March’s 50.3 reading. ISM added that the overall economy grew, at a slower rate, in April, for the 48th consecutive month. The previous 16 months of contraction through February were preceded by a stretch of 28 consecutive months of growth.

The April PMI is 1.5% above the 12-month average of 47.7, with March’s 50.3 marking the high over that period and June 2023 marking the lowest, at 46.4.

ISM reported that nine manufacturing sectors saw growth in April, including: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. Sectors that saw contraction included: Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.

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