The ISM Prices Index registered 84.5 percent in April, indicating manufacturers are paying higher prices on average when compared to March. This is the highest reading for the index since it registered 86 percent in May 2004. While 71 percent of respondents reported paying higher prices and 2 percent reported paying lower prices, 27 percent of supply executives reported paying the same prices as the preceding month. A Prices Index above 47.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.

In April, 16 industries reported paying higher prices: Wood Products; Plastics & Rubber Products; Chemical Products; Machinery; Miscellaneous Manufacturing; Fabricated Metal Products; Furniture & Related Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Primary Metals; Transportation Equipment; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Computer & Electronic Products; and Paper Products.

Backlog of Orders

ISM''s Backlog of Orders Index registered 51.5 percent in April, 4 percentage points higher than the 47.5 percent reported in March. This is the first month of growth following six consecutive months of contraction in the Backlog of Orders Index. Of the 85 percent of respondents who reported their backlog of orders, 23 percent reported greater backlogs, 20 percent reported smaller backlogs, and 57 percent reported no change from March.

The eight industries reporting an increase in order backlogs in April are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Miscellaneous Manufacturing; Paper Products; Food, Beverage & Tobacco Products; Transportation Equipment; and Computer & Electronic Products. The industries that reported decreases in order backlogs during April are: Wood Products; Nonmetallic Mineral Products; Fabricated Metal Products; Machinery; and Chemical Products.

New Export Orders

ISM''s New Export Orders Index registered 57.5 percent in April, an increase of 1 percentage point when compared to March''s index of 56.5 percent. This is the 65th consecutive month of growth in export orders.

The 11 industries reporting growth in new export orders in April are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Machinery; Computer & Electronic Products; Transportation Equipment; and Fabricated Metal Products. The industries that reported decreases in new export orders during April are: Furniture & Related Products and Chemical Products.

Imports

Imports of materials by manufacturers contracted during April as the Imports Index registered 48 percent, 3 percentage points higher than the 45 percent reported in March.

The five industries reporting growth in import activity for April are: Printing & Related Support Activities; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Transportation Equipment; and Machinery. The industries that reported decreases in imports during April are: Nonmetallic Mineral Products; Apparel, Leather & Allied Products; Petroleum & Coal Products; Paper Products; Plastics & Rubber Products; Computer & Electronic Products; and Chemical Products.

Buying Policy

Average commitment lead-time for Capital Expenditures decreased 6 days to 112 days. Average lead-time for Production Materials increased 3 day to 49 days. Average lead-time for Maintenance, Repair and Operating (MRO) Supplies increased 5 days to 26 days.


Available at:

http://www.ism.ws/ISMReport/MfgROB.cfm