US manufacturing growth slows to 21-month low: ISM

US manufacturing growth slows to 21-month low: ISM

Houston, 2 May (Argus) — US manufacturing extended its expansion in April even while activity eased to the lowest in 21 months, as gains in orders and production were hampered by supply chain and labor constraints.

The Institute for Supply Management's manufacturing purchasing managers' index (PMI) fell to 55.4 in April, down from 55.7 in the prior month and the lowest rate since July 2020. Readings above 50 signal growth while those below 50 signal contraction. The manufacturing sector has grown for 23 straight months.

"The US manufacturing sector remains in a demand-driven, supply chain-constrained environment," ISM said.

Price gains slowed in April, but global energy markets remain unstable amid the war in Ukraine, the institute said.

The new orders index registered 53.5, a 0.3 point drop from the prior month and the lowest since May 2020, when the US was in a deep, brief recession prompted by Covid-19 and related restrictions. The production index fell to 53.6, a 0.9 point drop on the month and also the lowest since May 2020.

The new export order index fell to 52.7, down by half a point from March, as overseas customer demand was suppressed by Covid-19 in Asia and the war in Ukraine, ISM said.

"Hiring and