US April Manufacturing PMI 50.2...Production Declines Amid Export Slump and Price Increase

Minseung Kang

Summary

The U.S. April Manufacturing PMI was reported at 50.2, falling short of Wall Street expectations, maintaining a state of economic stagnation.
Export orders fell by the largest margin since last November, with external factors such as exchange rates and tariffs impacting the situation.
The confidence index for future production outlook fell to the lowest in 10 months, with companies facing a decline in confidence due to trade policy concerns.

The United States' April Manufacturing Purchasing Managers' Index (PMI) fell short of expectations. The U.S. manufacturing sector remained virtually stagnant in April.

On the 1st (local time), S&P Global announced that the final manufacturing PMI was 50.2, falling short of Wall Street's expectation of 50.7. This is the same figure as March, maintaining an expansion above the baseline of 50 for four consecutive months, but the increase was minimal.

Specifically, the production index declined again following the previous month, and the increase in new orders remained minimal, staying at the lowest level this year. According to the report, export orders fell by the largest margin since November last year. Supply chain disruptions, a weak dollar, and tariff burdens were identified as the main causes of the export slump.

The confidence index for future production outlook also dropped to the lowest level in 10 months. The S&P report stated, "Companies are concerned about the direction of U.S. trade policy, which has led to a decline in economic confidence."

The Purchasing Managers' Index (PMI) uses 50 as a baseline to gauge whether the economy is expanding or contracting. A PMI above 50 indicates economic expansion, while below 50 indicates contraction.