ISM Report: Manufacturing PMI Falls 0.3 Points, Continues Contraction in April
The ISM (Institute for Supply Management) Manufacturing PMI registered 48.7% in April, indicating contraction at a faster rate when compared to the March reading of 49%.
“Of the five subindexes that directly factor into the Manufacturing PMI, two (supplier deliveries and inventories) were in expansion territory, the same as last month,” says Timothy Fiore, chair of the ISM’s manufacturing business survey committee.
Although remaining in contraction territory, the new orders index increased by 2 percentage points to 47.2%. Anything lower than 50% represents contraction.
The employment and production indexes also continued contracting, registering 46.5% and 44%, respectively.
“Demand and production retreated and destaffing continued, as panelists’ companies responded to an unknown economic environment,” says Fiore.
11 industries reported growth in April:
- Apparel, leather & allied products
- Petroleum & coal products
- Plastics & rubber products
- Electrical equipment, appliances & components
- Textile mills
- Computer & electronic products
- Nonmetallic mineral products
- Miscellaneous manufacturing
- Machinery
- Chemical products
- Primary metals
“Of the six largest manufacturing industries, four (petroleum & coal products; computer & electronic products; machinery; and chemical products) expanded in April, one more as compared to March,” says Fiore.
In the comments of the survey, respondents express their concerns about tariff volatility and its impact on customer orders and business operations.
“The recently imposed 145-percent tariff rate on Chinese imports is significantly affecting our 2025 profitability. Due to the complexity of our parts and the lack of alternate sources, we are unable to find any alternate suppliers — especially at a reasonable cost — to our current Chinese sources,” reports an executive in miscellaneous manufacturing.
“Tariffs impacting operations — specifically, delayed border crossings and duties calculations that are complex and not completely understood. As a result, we are potentially overpaying duties,” writes a respondent in the transportation equipment sector.
