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2025.05.0114:21:00UTC+00U.S. Manufacturing Index Dips Slightly Further Into Contraction Territory In April

The Institute for Supply Management released a report on Thursday showing a slight decrease by its reading on U.S. manufacturing activity in the month of April.

The ISM said its manufacturing PMI edged down to 48.7 in April after slipping to 49.0 in March, with a reading below 50 indicating contraction. Economists had expected the index to dip to 48.0.

The modest decline by the headline index came as the production index dropped further into contraction territory, slumping to 44.0 in April from 48.3 in March.

Meanwhile, the new orders index climbed to 47.2 in April from 45.2 in March and the employment index rose to 46.5 in April from 44.7 in March. The readings below 50 still indicate contraction.

The report said the prices index also crept up to 69.8 in April from 69.4 in March, indicating slightly faster growth by raw materials prices.

"Demand and production retreated and destaffing continued, as panelists' companies responded to an unknown economic environment," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

He added, "Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth."

Next Monday, the ISM is scheduled to release a separate report on U.S. service sector activity in the month of April.

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