U.S. April ISM Manufacturing - Stable but with higher inflationary pressure
April’s ISM manufacturing index at 52.7 is unchanged from March and slightly below expectations but this still means four straight clearly positive readings from an index that had been running below neutral for the ten preceding months.
Inflation signals are however stronger. Prices paid do not contribute to the composite but at 84.6 are up from 78.3 and at their highest since April 2022. The ISM manufacturing prices paid index is not seasonally adjusted. If it were seasonally adjusted, the rise would probably not have been quite as sharp. Price data is seasonally adjusted in the ISM services survey. In either survey does the prices paid index contribute to the composite.
Also hinting at inflationary pressure is a rise in delivery times to 60.6 from 58.9, reaching is highest since May 2022. This index dies contribute to the composite meaning the unchanged composite was down excluding delivery times.
New orders at 54.1 are up from 53.5 in march but below January and February. Employment at 46.4 from 48.7 is at a 4-month low.
