Two US manufacturing PMI (purchasing managers'
index data) surveys published Thursday show strong growth in April.
On Wednesday a government report showed that US
growth shuddered to a halt in the first quarter due to both severe weather and a
fall in exports.
Activity in the manufacturing sector expanded in
April for the 11th consecutive month, and the overall economy grew for the 59th
consecutive month, say the nation's supply executives in the latest
Manufacturing ISM Report On Business.
Bradley J. Holcomb, chair of the Institute for Supply
Management (ISM) Manufacturing Business Survey Committee, said:. "The
April PMI registered 54.9%, an increase of 1.2 percentage points from March's
reading of 53.7% indicating expansion in manufacturing for the 11th consecutive
month. The New Orders Index registered 55.1%, equal to the reading in March,
indicating growth in new orders for the 11th consecutive month. The Production
Index registered 55.7%, slightly below the March reading of 55.9 percent.
Employment grew for the 10th consecutive month, registering 54.7%, an increase
of 3.6 percentage points over March's reading of 51.1%. Comments from the panel
generally remain positive; however, some expressed concern about international
economic and political issues potentially impacting demand."
Of the 18 manufacturing industries, 17 are reporting growth in April in the
following order: Apparel, Leather & Allied Products; Primary Metals; Furniture &
Related Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco
Products; Transportation Equipment; Fabricated Metal Products; Machinery;
Printing & Related Support Activities; Plastics & Rubber Products; Textile
Mills; Chemical Products; Computer & Electronic Products; Wood Products; Paper
Products; Petroleum & Coal Products; and Electrical Equipment, Appliances &
Components. The only industry reporting contraction in April is Nonmetallic
Markit, the London-based
financial data firm, said US manufacturers indicated a strong start
to the second quarter of 2014, with output and new business volumes both rising
sharply during April. Job creation continued, albeit at the slowest pace for
three months, while input cost inflation moderated to its weakest since May
2013. Factory gate price inflation was the least marked for nine months.
The headline figure derived from the survey is
the Markit US Manufacturing Purchasing Managers’ Index
(PMI), which is designed to signal changes in prevailing business
conditions in the US manufacturing sector. PMI readings above 50.0 signal an
improvement in business conditions, while readings below 50.0 signal
At 55.4 in April, the final Markit US
Manufacturing PMI was little-changed from 55.5 in March and remained well above
the 50.0 no-change value. The latest reading signalled an improvement in overall
business conditions that matched the average for the first quarter of 2014
Faster expansions of production levels and
incoming new work were the main positive influences on the headline PMI in
April. Latest data signalled that output increased at the steepest pace since
March 2011. Survey respondents commented that improving domestic economic
conditions had been a key factor supporting production levels in April.