The United States manufacturing Purchasing Managers' Index (PMI) has continued to decline for two consecutive months, indicating a contraction phase. However, the PMI slightly exceeded market expectations.
The Institute for Supply Management (ISM) reported on April 30 that the manufacturing PMI for April was recorded at 48.7. A PMI above the baseline of 50 generally indicates an expansion phase, while a reading below suggests a contraction phase.
The April PMI dropped by 0.3 points from the previous month, continuing the declining trend and contraction phase for two months. Among the detailed components that make up the index, the production index fell sharply from 48.3 in March to 44 in April.
Timothy Fiore, chair of the ISM Manufacturing Survey Committee, noted that "the corporations surveyed are responding to an uncertain economic environment, leading to a retreat in demand and production, and ongoing staff reductions," and explained that "tariff-related price increases have accelerated slightly, resulting in backlogs of new orders, slowed deliveries from suppliers, and rising inventory levels."