Manufacturing Grows in April, Braking an 11-Month Decline
The U.S. manufacturing economy showed renewed strength in April, ending an 11-month decline, the National Assn. of Purchasing Management reported today.
The Purchasing Managers’ Index rose to 50.2% in April, up from 48.8% in March.
A reading below 50 generally indicates the manufacturing segment of the economy is experiencing a decline in growth. A reading above 50 usually indicates that the manufacturing portion of the economy is expanding.
“The 50.2% signaled an expansion in the manufacturing economy, ending a string of 11 consecutive months of decline, which slowed the entire economy,” said Robert J. Bretz, chairman of the group of purchasing executives and director of materials management at Pitney Bowes Inc.
The index last dropped below a reading of 50 in May, 1989, when it stood at 49.8%.
“The rebound should be sufficient to sustain solid production growth for several months and buoy the entire economy over the balance of the second quarter,” Bretz added.
Making a major contribution to the overall index was the New Export Orders Index, which rose to 60.5% in April, a full point higher than in March and the highest reading since September, 1989.