Manufacturing Orders Gaining; Biggest Jump in 2 Quarters
Published: 05 May 2009
by Staff
TEMPE, AZ -- US manufacturing activity slipped in April for the 15th consecutive month, but the rate of new orders jumped six points to its highest level since September, according to the latest poll of the nation's executives.
After six consecutive months below the 40%, mark, the PMI index of manufacturing activity jumped nearly four points to 40.1%. A PMI over 41.2%, over time, generally indicates an expansion of the overall economy, said the Institute for Supply Management, which tracks the data.
The New Orders index hit 47.2%, the with Computer & Electronic Products segment reporting growth. The Customers’ Inventories Index fell, a sign that stocks are being cut. The pricing index fell as well, meaning manufacturers are paying less for goods and services.
ISM spokesman Norbert Ore said, “The decline in the manufacturing sector continues to moderate. The PMI shows a significant improvement. While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again."
The overall economy contracted for the seventh consecutive month.
