ISM April Manufacturing Index Shows Continued Growth

Manufacturing activity grew in April for the 11th consecutive month, while the overall economy grew for the 30th consecutive month, factory purchasing managers reported Monday through the Institute for Supply Management.

SM surveys more than 400 companies in 20 industries, including clothing, printing, transportation, furniture and plastics. Manufacturing accounts for about one-seventh of the overall economy.

The survey's index of prices paid, a measure of costs for purchased materials and services, surged to 88, up from 86 in March and the highest level since 89.2 in November 1979.

ISM's 62.4 factory index followed a 62.5 in March and reflected a drop in inventories, Bloomberg reported. Readings greater than 50 signal expansion.

Economists had expected a reading of 62.7 in the factory index, based on a Bloomberg News survey.

For a third straight month, all 20 industries included in ISM’s purchasing managers' index survey reported growth, Bloomberg reported.

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