Manufacturing orders, production, employment expanding

Economic activity in the U.S. manufacturing sector grew in April for the 23rd consecutive month, while the overall economy grew for the 42nd consecutive month, said the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued May 2 by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "In April the manufacturing sector grew for the 23rd consecutive month based on the ISM data. This represents the longest period of growth in the last 16 years. However, the rate of growth slowed to its lowest level since July 2003. The trend is definitely toward a slower pace of growth, and that should relieve some of the pricing pressure that the sector has experienced during 2004 and year to date in 2005. Declines in Inventories indicate that manufacturers are adjusting to slower growth in new orders."

The 14 industries reporting growth in April—listed in order—are: wood and wood products; miscellaneous; rubber and plastic products; instruments and photographic equipment; furniture; leather; glass, stone, and aggregate; industrial and commercial equipment and computers; chemicals; food; tobacco; fabricated metals; primary metals; and transportation and equipment. Petroleum is the only industry reporting the same level of activity as last month. The industries reporting decreased activity in April are: apparel; paper; electronic components and equipment; printing and publishing; and textiles.

Fabricated metals was among the industries that reported new order and production growth in April. However, it was not among those that reported employment growth.