Us manufacturing activity shrank in April due to falling demandCheetosbaccaratA price indicator reached its highest level since inflation peaked in 2022.
The Institute for supply Management (ISM) manufacturing index fell 1.Cheetosbaccarat.1: 00 to 49Cheetosbaccarat. 2CheetosbaccaratThe previous month it rose above 50 for the first time since 2022. A reading below 50 indicates a contraction in industry activity, with April data weaker than the median expected by economists surveyed by Bloomberg.
Measures of raw materials and other input costs rose for the second month in a row, indicating the stubbornness of inflationary pressures. The index of paid prices rose 5.1 points to 60.9, the highest since June 2022.
Meanwhile, a production index in April fell 3.3 points after a sharp rise the previous month, while a new order index returned below 50.
The data suggest that despite some signs of optimism earlier this year, manufacturing growth remains sluggish, with high interest rates, high input costs and weak overseas markets all bad for producers.
"demand is still in the early stages of recovery and continues to show signs of improvement," Timothy Fiore, chairman of the ISM Manufacturing Business Survey Board, said in a statement.
ISM data showed that orders from overseas customers shrank for the first time in three months, while the decline in the backlog of orders accelerated.
The ISM employment index fell for the seventh month in a row, but at a slower pace.