Manufacturing Gauge Expands Rapidly in April

Monday, 03 May 2010 01:42 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The U.S. manufacturing sector expanded at the fastest pace in nearly six years in April, as factories continue to lead the economy's rebound.

The Institute for Supply Management, a private trade group of purchasing executives, said Monday its manufacturing index rose to 60.4 last month from 59.6 in March. It's the ninth straight month of growth. A level above 50 indicates expansion.

It is the fastest pace of growth since June 2004 when the index was at 60.5.

Economists polled by Thomson Reuters had expected a lower reading of 60.

The growth in manufacturing seemed stable, ISM said. "We don't have any reason to believe this won't continue," said Norbert Ore, chair of the ISM's manufacturing survey on a conference call.

The strong start to the second quarter suggests that the economy could grow 3 percent or more in the second quarter, said Miller Tabak analyst Dan Greenhaus in a research note.

New orders, a gauge of future production, jumped to 65.7 from 61.5 in March, according to the ISM report. Production rose to 66.9, the highest level since January 2004 from 61.1 in March.

ISM said its employment index, which measures employers' willingness to hire, rose to 58.5, the strongest level since January 2005, from 55.1 in March.

Seventeen of the 18 industries surveyed reported growth.

Inventories fell to 49.4 from 55.3 in March. Before March, inventories had shrunk every month since April 2006 as manufacturers, wary of future demand for their products, cut back on supplies.

The rebuilding of inventories contributed to two-thirds of the economic growth in the fourth quarter of 2009 and half the of the growth in the first three months of this year.

Ore said the "inventory correction" would probably be done by June. That means continued growth in manufacturing will depend on a healthier consumer demanding more goods from companies and businesses continuing to spend.

Manufacturers said they believed their customers' inventories were still too low, suggesting they will have to keep increasing production.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Climate Change Crowd Silent on Agenda's Economic Blow

Tuesday, 23 Sep 2014 20:26 PM

As Watchdog.org reporter Bruce Parker vividly reported Sunday from inside the environmentalist carnival that was the Peo . . .

US Capital Votes to Allow Concealed Firearms

Tuesday, 23 Sep 2014 18:48 PM

City council members voted unanimously but reluctantly Tuesday to allow residents and visitors alike to carry concealed  . . .

RFK Jr.: 'Do I Think the Koch Brothers Are Treasonous? Yes I Do'

Tuesday, 23 Sep 2014 18:38 PM

There ought to be a law against climate-change deniers, according to activist Robert F. Kennedy Jr.
In an interview . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved