Decline in Manufacturing Activity

The United States witnessed a further decline in manufacturing activity in April, as indicated by the Purchasing Managers' Index (PMI) falling below the neutral 50 mark for the second consecutive month. The Institute for Supply Management (ISM) reported the April figure at 48.7, a decrease from March's 49.

Key Index Movements

While the New Orders Index showed a slight rebound, landing at 47.2, the Production Index experienced a more significant drop to 44. On a positive note, the Employment Index improved to 46.5 from 44.7 in March, though it remained under the 50 threshold.

Economic Challenges Ahead

ISM Manufacturing Business Survey Committee Chair Timothy Fiore highlighted the challenges: "Demand and production have retreated, and destaffing continues as companies navigate an uncertain economic landscape. Slightly accelerated price growth, attributed to tariffs, has led to new order backlogs, slower supplier deliveries, and increased manufacturing inventories."