The following is the un-edited press release from the Institute for Supply Management.


PERFORMANCE BY INDUSTRY

The only manufacturing industry reporting growth in April is Miscellaneous Manufacturing. The industries reporting contraction in April — listed in order — are: Printing & Related Support Activities; Primary Metals; Apparel, Leather & Allied Products; Textile Mills; Chemical Products; Furniture & Related Products; Petroleum & Coal Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Computer & Electronic Products; and Nonmetallic Mineral Products.
WHAT RESPONDENTS ARE SAYING ...
""""International customers are having trouble getting cash for new orders, even though they need/want the equipment."""" (Computer & Electronic Products)

""""Starting to see some signs of increased production and demand from some automotive customers."""" (Fabricated Metal Products)

""""Business conditions continue to be soft, but agriculture-related products are still quite bullish."""" (Machinery)

""""We are optimistic that things will change for the better in 3Q."""" (Chemical Products)

""""Starting to hear of slight upticks in orders from some sectors of our business but not all."""" (Electrical Equipment, Appliances & Components)

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Copper (2) is the only commodity reported up in price.

Commodities Down in Price

Aluminum (7); Aluminum Based Products; Caustic Soda (2); Corrugated Containers (4); Fuel Surcharges; Natural Gas (9); Scrap Metal; Steel (8); and Steel Products (3).

Commodities in Short Supply

No commodities are reported in short supply.

PMI

Manufacturing contracted in April as the PMI registered 40.1 percent, which is 3.8 percentage points higher than the 36.3 percent reported in March. This is the 15th consecutive month of contraction in the manufacturing sector. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 41.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates contraction in both the overall economy and the manufacturing sector. Ore stated, """"The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (37 percent) corresponds to a 1.3 percent decrease in real gross domestic product (GDP). In addition, if the PMI for April (40.1 percent) is annualized, it corresponds to a 0.3 percent decrease in real GDP annually.""""

New Orders

ISM''s New Orders Index registered 47.2 percent in April, 6 percentage points higher than the 41.2 percent registered in March. This is the 17th consecutive month of contraction in the New Orders Index. A New Orders Index above 48.8 percent, over time, is generally consistent with an increase in the Census Bureau''s series on manufacturing orders (in constant 2000 dollars).