ISM Manufacturing Index Misses Forecast After Outperforming for 7 Months

An SUV moves through the assembly line at the General Motors Assembly Plant in Arlington, Texas June 9, 2015. (Photo: Reuters)

The Institute for Supply Management gauge of the U.S. manufacturing sector showed slower growth than expected in April after 7 straight months of beating views. The ISM manufacturing index finally fell short at 54.8 in April, or 7 tenths below Econoday’s low estimate.

“Comments from the panel generally reflect stable to growing business conditions; with new orders, production, employment and inventories of raw materials all growing in April over March,” Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management Manufacturing Business Survey Committee said.

The only industry that reported contraction in April compared to March is Apparel, Leather & Allied Products.

Of the 18 manufacturing industries, 16 reported growth in April in the following order: Electrical Equipment, Appliances & Components; Textile Mills; Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; Primary Metals; Miscellaneous Manufacturing; Computer & Electronic Products; Petroleum & Coal Products; and Transportation Equipment.

57.6	+1.0	Growing	Faster	8
Employment	52.0	58.9	-6.9	Growing	Slower	7
Supplier Deliveries	55.1	55.9	-0.8	Slowing	Slower	12
Inventories	51.0	49.0	+2.0	Growing	From Contracting	1
Customers’ Inventories	45.5	47.0	-1.5	Too Low	Faster	7
Prices	68.5	70.5	-2.0	Increasing	Slower	14
Backlog of Orders	57.0	57.5	-0.5	Growing	Slower	3
New Export Orders	59.5	59.0	+0.5	Growing	Faster	14
Imports	55.5	53.5	+2.0	Growing	Faster	3
OVERALL ECONOMY				Growing	Slower	95
Manufacturing Sector				Growing	Slower	8