ISM Manufacturing Index Expands in April

The Institute for Supply Management said its index of national factory activity grew in April at its fastest pace in almost six years. The index expanded to 60.4 last month from 59.6 in March. Any reading above 50 shows expansion.

What respondents are saying….

• “Finances continue to be tight, and we are decreasing safety stock levels to reduce inventory.” (Electrical Equipment, Appliances & Components)
• “Business conditions continue to improve. Actual sales exceeded budget for the third straight month.” (Food, Beverage & Tobacco Products)
• “Demand from automotive manufacturers has continued to improve month over month.” (Fabricated Metal Products)
• “We are finally seeing a turnaround.” (Primary Metals)
• “Upward price pressure still evident.” (Chemical Products)

APRIL 2010
Index	Series Index April	Series Index March	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI	60.4	59.6	+0.8	Growing	Faster	9
New Orders	65.7	61.5	+4.2	Growing	Faster	10
Production	66.9	61.1	+5.8	Growing	Faster	11
Employment	58.5	55.1	+3.4	Growing	Faster	5
Supplier Deliveries	61.3	64.9	-3.6	Slowing	Slower	11
Inventories	49.4	55.3	-5.9	Contracting	From Growing	1
Customers’ Inventories	33.0	39.0	-6.0	Too Low	Faster	13
Prices	78.0	75.0	+3.0	Increasing	Faster	10
Backlog of Orders	57.5	58.0	-0.5	Growing	Slower	4
Exports	61.0	61.5	-0.5	Growing	Slower	10
Imports	58.0	57.0	+1.0	Growing	Faster	8
OVERALL ECONOMY				Growing	Faster	12
Manufacturing Sector				Growing	Faster	9