US ISM Manufacturing PMI dropped to 60.7 in April, down from 64.7, below expectation of 65.0. The details also generally weakened. New orders dropped from 68.0 to 64.3. Production dropped from 68.1 to 62.5. Employment dropped from 59.6 to 55.1. However, prices rose from 85.6 to 89.6.
ISM said: The Manufacturing PMI continued to indicate strong sector expansion and U.S. economic growth in April. Four of the five subindexes that directly factor into the Manufacturing PMI were in growth territory. All of the six biggest manufacturing industries expanded.”
“The past relationship between the Manufacturing PMI and the overall economy indicates that the Manufacturing PMI for April (60.7 percent) corresponds to a 5-percent increase in real gross domestic product (GDP) on an annualized basis.”
