April Manufacturing ISM Report On Business®; PMI at 60.4%; New Orders, Production and Employment Growing; Supplier Deliveries Slower; Inventories Contracting

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of April 2010.

TEMPE, Ariz. — (BUSINESS WIRE) — May 3, 2010 — Economic activity in the manufacturing sector expanded in April for the ninth consecutive month, and the overall economy grew for the 12th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The manufacturing sector grew for the ninth consecutive month during April. The rate of growth as indicated by the PMI is the fastest since June 2004 when the index hit 60.5 percent. Manufacturers continue to see extraordinary strength in new orders, as the New Orders Index has averaged 61.6 percent for the past 10 months. The signs for employment in the sector continue to improve as the Employment Index registered its fifth consecutive month of growth. Overall, the recovery in manufacturing continues quite strong, and the signs are positive for continued growth.”


Seventeen of the 18 manufacturing industries are reporting growth in April, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Wood Products; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Transportation Equipment; Machinery; Computer & Electronic Products; Primary Metals; Furniture & Related Products; Chemical Products; Printing & Related Support Activities; Paper Products; and Food, Beverage & Tobacco Products. No industries are reporting contraction in April.


  • “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






of Change


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


Manufacturing Sector

Growing Faster 12
Growing Faster 9

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