By Mucahithan Avcioglu
ISTANBUL (AA) - Economic activity in the US manufacturing sector contracted deeper in April, but at a slower pace, according to a report Thursday by the Institute for Supply Management (ISM).
The ISM manufacturing purchasing managers' index (PMI) came in at 48.7% --down 0.3 percentage points from March. A reading above 50 indicates growth, while below that level shows contraction.
"Economic activity in the manufacturing sector contracted in April for the second month in a row, following a two-month expansion preceded by 26 straight months of contraction," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.
The expectation for the index was 48%.
"Demand and production retreated and destaffing continued, as panelists’ companies responded to an unknown economic environment. Prices growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth," Fiore noted.
"Forty-one percent of manufacturing gross domestic product (GDP) contracted in April, down from 46 percent in March. The share of manufacturing sector GDP registering a composite PMI® calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 18 percent in April, an 11-percentage point increase compared to the 7 percent reported in March," he added.
On the other hand, S&P Global's PMI for the US came in at 50.2 points in April, still signaling a growth, though slight.
It was below forecasts of 50.7 points.