5/01/2023

US Factory Activity Contracts for a Sixth Month, ISM Data Show

 


 

May 1, 2023

(Bloomberg) -- US factory activity contracted for a sixth-straight month in April, the longest such stretch since 2009 and a sign of lingering malaise in manufacturing.

The Institute for Supply Management’s gauge of factory activity rose to 47.1 from an almost three-year low of 46.3 a month earlier, according to data released Monday. A reading below 50 indicates shrinking activity.

A measure of prices paid for materials rebounded to the highest level since July. The increase coincided with a pickup in crude oil prices early in the month, though they have recently cooled on concerns about demand.

The step-up in input prices comes on the heels of data last week that showed the Federal Reserve’s key inflation gauges rose at a brisk pace in March. Central bankers are expected to raise interest rates by 25 basis points this week.

The purchasing managers group’s measures of orders and production improved slightly but remained in contraction territory. The good news is that the figures suggest the manufacturing sector is shrinking at a slower rate.

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