*Number of months moving in current direction. Manufacturing ISM® Report On Business® data is seasonally adjusted for the
New Orders, Production, Employment and Supplier Deliveries Indexes.
MANUFACTURING APRIL 2017 Analysis by Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management® Manufacturing Business Survey Committee.
MANUFACTURING AT A GLANCE
Index Apr Index Mar Index Point Change Direction Rate of Change Trend* (months)
PMI® 54.8 57.2 - 2. 4 Growing Slower 8
New Orders 57.5 64.5 - 7.0 Growing Slower 8
Production 58.6 57.6 + 1.0 Growing Faster 8
Employment 52.0 58.9 - 6. 9 Growing Slower 7
Supplier Deliveries 55.1 55.9 -0.8 Slowing Slower 12
Inventories 51.0 49.0 + 2.0 Growing From Contracting 1
Customers’ Inventories 45.5 47.0 - 1. 5 Too Low Faster 7
Prices 68.5 70.5 - 2.0 Increasing Slower 14
Backlog of Orders 57.0 57.5 -0.5 Growing Slower 3
New Export Orders 59.5 59.0 +0.5 Growing Faster 14
Imports 55.5 53.5 + 2.0 Growing Faster 3
OVERALL ECONOMY Growing Slower 95
Manufacturing Sector Growing Slower 8
43.3% = Overall Economy
50% = Manufacturing Economy
2017 2016 2015
Commodities Up in Price: Aluminum ( 6); Copper ( 6); Corrugate ( 7); Corrugated Boxes ( 2); Diesel; Gasoline; HDPE ( 2); Lumber; Oil; Plastic
Resin ( 2); Polypropylene ( 3); Resin-based Products; Rubber – Natural ( 3); Scrap Metal ( 3); Stainless Steel ( 13); Steel ( 16); Steel – Cold
Rolled ( 6); Steel – Hot Rolled ( 5); Steel Tubing ( 3); and Titanium Dioxide ( 5).
Commodities Down in Price: None.
Commodities in Short Supply: Electronic Components ( 2); and Titanium Dioxide.
Note: The number of consecutive months the commodity is listed is indicated after each item.
Manufacturing expanded in April as the PMI® registered 54.8 percent, a decrease of
2. 4 percentage points from the March reading of 57.2 percent, indicating growth in
manufacturing for the eighth consecutive month. A reading above 50 percent indicates
that the manufacturing economy is generally expanding; below 50 percent indicates
that it is generally contracting. A PMI® above 43.3 percent, over a period of time,
generally indicates an expansion of the overall economy.
Economic activity in the manufacturing sector expanded in April, and the overall economy grew for the 95th consecutive month, say the nation’s supply executives in
the latest Manufacturing ISM® Report On Business®.
The April PMI® registered 54.8
percent. The New Orders Index
registered 57.5 percent, a decrease
of 7 percentage points from the
March reading of 64.5 percent.
The Employment Index registered
52 percent, a decrease of 6. 9
percentage points from the March reading of 58.9 percent.
The Prices Index registered 68.5 percent in April, a decrease
of 2 percentage points from the March reading of 70.5
percent, indicating higher raw materials prices for the 14th
consecutive month, but at a slower rate of increase in April
compared with March. Comments from the panel generally
reflect stable to growing business conditions, with new orders,
production, employment and inventories of raw materials
all growing in April over March. Of the 18 manufacturing
industries, 16 reported growth in April in the following order:
Electrical Equipment, Appliances & Components; Textile Mills;
Nonmetallic Mineral Products;
Furniture & Related Products;
Plastics & Rubber Products;
Fabricated Metal Products; Printing
& Related Support Activities;
Machinery; Paper Products;
Chemical Products; Food,
Beverage & Tobacco Products; Primary Metals; Miscellaneous
Manufacturing‡; Computer & Electronic Products; Petroleum &
Coal Products; and Transportation Equipment.
‡Miscellaneous Manufacturing (products such as medical equipment and supplies,
jewelry, sporting goods, toys and office supplies).