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


(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in April for the third consecutive month, while the overall economy grew for the 66th consecutive month, say the nation''s supply executives in the latest Manufacturing ISM Report On Business.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. """"Manufacturing activity increased in April as the PMI reflects accelerating growth for the month. New Orders and Production improved significantly as did Employment. Manufacturers are now in their ninth month of inventory reduction, so supply chains are generally in balance. On the negative side, prices continue to rise at a rapid rate with metals and energy being the areas of greatest concern to buyers.""""

TOP PERFORMING INDUSTRIES

The 11 industries reporting growth in April — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Machinery; Chemical Products; Transportation Equipment; Computer & Electronic Products; Plastics & Rubber Products; Fabricated Metal Products; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

""""The economy seems strong, business is good here."""" (Fabricated Metal Products)
""""Detecting contractor manpower shortages."""" (Chemical Products)
""""High corn prices could have long-term impact on soft drink industry."""" (Food, Beverage & Tobacco Products)
""""First quarter business was strong despite gloomy 2006 forecasts for the 2007 diesel engine industry."""" (Machinery)
""""Business remains at or above budget in all markets."""" (Primary Metals)

APRIL 2007 MANUFACTURING INDEX SUMMARIES PMI

Manufacturing growth accelerated in April as the PMI registered 54.7 percent, an increase of 3.8 percentage points when compared to March''s reading of 50.9 percent. 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 41.9 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates that both the overall economy and the manufacturing sector are growing. """"The past relationship between the PMI and the overall economy indicates that the PMI average for January through April (51.8 percent) corresponds to a 3.1 percent increase in real gross domestic product (GDP) annually. In addition, if the PMI for April (54.7) is annualized, it corresponds to a 4 percent increase in real GDP annually.""""

New Orders

ISM''s New Orders Index surged to 58.5 percent in April. The index is 6.9 percentage points higher than the 51.6 percent reported in March. A New Orders Index above 49.1 percent, over time, is generally consistent with an increase in the Census Bureau''s series on manufacturing orders (in constant 2000 dollars). Eleven industries reported increases during April: Wood Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Machinery; Plastics & Rubber Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; Computer & Electronic Products; and Paper Products.

Production

ISM''s Production Index registered 57.3 percent in April, 4.3 percentage points higher than the 53 percent reported in March. April is the third consecutive month of production growth for manufacturers. An index above 49.8 percent, over time, is generally consistent with an increase in the Federal Reserve Board''s Industrial Production figures. Of the industries reporting in April, 11 registered growth: Wood Products; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Chemical Products; Transportation Equipment; Machinery; Fabricated Metal Products; Furniture & Related Products; and Computer & Electronic Products.

Employment

ISM''s Employment Index registered 53.1 percent in April, which is an increase of 4.4 percentage points when compared to March''s reading of 48.7 percent. An Employment Index above 49.2 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment. The eight industries reporting growth in employment during April are: Wood Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Chemical Products; Plastics & Rubber Products; Machinery; and Transportation Equipment.

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations was slower for the 46th consecutive month in April. ISM''s Supplier Deliveries Index registered 50.2 percent in April, a decrease of 1.1 percentage points when compared to March''s reading of 51.3 percent. A reading above 50 percent indicates slower deliveries. The four industries reporting slower supplier deliveries in April are: Primary Metals; Computer & Electronic Products; Transportation Equipment; and Chemical Products.

Inventories