ISM Manufacturing Index Gains in April

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he Institute for Supply Management said Monday its manufacturing index rose in April from the previous month.

SM’s factory index rose to 57.3 from 55.2 in March, the group said in its monthly report. That was greater than a drop to 55 predicted by analysts, Bloomberg reported.

Readings higher than 50 indicate growth. The index has shown expansion since May 2003.

“The manufacturing sector grew at a faster rate during April as production and employment showed significant strength,” said Norbert Ore, chairman of ISM’s manufacturing committee.

ISM’s prices-paid index jumped five points to 71.5.

New orders, which make up about a third of the total index, fell to 57.6 from 58.4.

The production index, a measure of work being performed, rose to 60.4 from 57.5.

The employment index rose to 55.8 from 52.5. The inventories index rose to 51.3 from 48.7.

SM, based in Tempe, Ariz., surveys more than 400 companies in 20 industries, including transportation, to compile its index.

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