ISM Manufacturing Index Improves

Manufacturing in the U.S. improved last month but still showed overall contraction, the Institute for Supply Management said Friday.

ISM’s monthly factory services index rose to a reading of 40.1, from 36.3 in March, ISM said in its monthly report. Figures of more than 50 indicate expansion, while below that shows contraction.

ISM’s gauge of new orders jumped 6 points to a 47.2 reading, while export orders rose 5 points to 44.

“The decline in the manufacturing sector continues to moderate,” said Norbert Ore, chair of ISM’s business survey committee. “After six consecutive months below the 40% mark, the [index], driven [new orders], shows a significant improvement.

“This is definitely a good start for the second quarter,” he said in a statement.

The factory index measures manufacturing components of the economy.