US April ISM Manufacturing PMI 48.7…Manufacturing Sector Contracts for Two Consecutive Months

Minseung Kang

Summary

The US April ISM Manufacturing PMI was 48.7, higher than expected, but still below 50 for two consecutive months, indicating continued contraction in the manufacturing sector.
ISM evaluated that demand and production slowdowns, and workforce reductions are continuing, with companies focusing on cost defense amid uncertain economic outlooks.
The S&P Global manufacturing PMI was 50.2, below Wall Street's expectation of 50.7, showing that the US manufacturing economy remained stagnant in April.

The US April ISM Manufacturing Purchasing Managers' Index (PMI) exceeded expectations.

According to the manufacturing PMI report released by the Institute for Supply Management (ISM) on the 1st (local time), the US April manufacturing PMI was 48.7, surpassing the expected 48.0. However, the PMI figure fell below the baseline of 50, indicating that the manufacturing sector has been in a contraction phase for two consecutive months.

ISM evaluated in the report that "demand and production slowdowns, workforce reductions are continuing, and companies are focusing on cost defense amid uncertain economic outlooks."

ISM conducts a monthly survey of 400 companies across 20 industries to assess the manufacturing economy and calculate the PMI index. If this index is above 50, it means more opinions expect economic expansion, and if it is below 50, more opinions expect economic contraction.

Meanwhile, the final manufacturing PMI released by S&P Global on the same day was 50.2, below Wall Street's expectation of 50.7. It is interpreted that the US manufacturing economy remained stagnant in April.