ISM Manufacturing Index Continues to Show Contraction

The Institute for Supply Management’s manufacturing index continued to show contraction in April, matching March’s reading, ISM said Thursday.

ISM’s factory index, which the group releases on the first of each month, held at 48.6. Readings above 50 indicate expansion; below that show contraction.

February’s reading of 48.3 had been the lowest in almost five years. Economists had forecast the survey would fall to a 48 reading, Bloomberg reported.

The new orders index held at 46.5, while production showed a 0.4% increase. Prices rose 1%, ISM said.

“Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates,” said Norbert Ore, chair of ISM’s manufacturing business survey committee.

The factory sector is one of trucking’s largest and most important customers.