A PMI in excess of 41.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates the overall economy is growing and the manufacturing sector is contracting at this time. Ore stated, """"The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (49.1 percent) corresponds to a 2.5 percent increase in real gross domestic product (GDP). In addition, if the PMI for April (48.6 percent) is annualized, it corresponds to a 2.4 percent increase in real GDP annually.""""

New Orders

ISM''s New Orders Index registered 46.5 percent in April, the same as in March. A New Orders Index above 51.6 percent, over time, is generally consistent with an increase in the Census Bureau''s series on manufacturing orders (in constant 2000 dollars).

Six industries reported increases during April: Miscellaneous Manufacturing; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Paper Products; Transportation Equipment; and Chemical Products. The industries that reported decreases during April are: Apparel, Leather & Allied Products; Textile Mills; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Machinery; Nonmetallic Mineral Products; and Food, Beverage & Tobacco Products.

Production

ISM''s Production Index increased to 49.1 percent in April, an increase of 0.4 percentage point from the 48.7 percent reported in March. An index above 49.9 percent, over time, is generally consistent with an increase in the Federal Reserve Board''s Industrial Production figures.

Of the industries reporting in April, eight registered growth: Apparel, Leather & Allied Products; Computer & Electronic Products; Miscellaneous Manufacturing; Machinery; Chemical Products; Furniture & Related Products; Paper Products; and Transportation Equipment. The industries that reported decreased production during April are: Textile Mills; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Fabricated Metal Products; and Food, Beverage & Tobacco Products.

Employment

ISM''s Employment Index registered 45.4 percent in April, which is a decrease of 3.8 percentage points when compared to the 49.2 percent reported in March. An Employment Index above 49.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

The five industries reporting growth in employment during April are: Miscellaneous Manufacturing; Furniture & Related Products; Transportation Equipment; Machinery; and Computer & Electronic Products. The industries that reported decreases in employment during April are: Wood Products; Textile Mills; Primary Metals; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Chemical Products; and Nonmetallic Mineral Products.

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations continued to slow in April as the Supplier Deliveries Index increased 0.4 percentage point to 54 percent from the 53.6 percent registered in March. A reading above 50 percent indicates slower deliveries.

The five industries reporting slower supplier deliveries in April are: Petroleum & Coal Products; Fabricated Metal Products; Computer & Electronic Products; Machinery; and Transportation Equipment. The only industry reporting faster deliveries during April is Nonmetallic Mineral Products.

Inventories

Manufacturers'' inventories contracted in April as the Inventories Index registered 48.1 percent, which is 3.2 percentage points higher than the 44.9 percent reported in March. This is the 24th consecutive month of inventory liquidation. An Inventories Index greater than 42.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis'' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The five industries reporting higher inventories in April are: Printing & Related Support Activities; Primary Metals; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products. The industries that reported decreases during April are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Wood Products; Petroleum & Coal Products; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; and Transportation Equipment.

Customers'' Inventories

The ISM Customers'' Inventories Index registered 45 percent in April, a decrease of 6 percentage points when compared to March''s reading of 51 percent. The index indicates that respondents believe their customers'' inventories are too low at this time.

Three industries reported higher customers'' inventories during April: Textile Mills; Plastics & Rubber Products; and Fabricated Metal Products. The industries that reported lower customers'' inventories during April are: Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Chemical Products; Machinery; and Furniture & Related Products.

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