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A closely-watched manufacturing index jumped 3.8 percentage points in April, its highest

level in eight months and a new sign the steep decline in the American economy is

easing.

The Institute of Supply Management's index of manufacturing reached 40.1 percent, still

showing factory activity is declining. But it also was the fourth straight month the

PMI index improved from month to month and it was the first time the index cleared 40

percent since last September.

The ISM's index of new orders grew at an even faster rate, expanding six percentage

points, to 47.2 percent, the highest level for that signal of manufacturing confidence since

August 2008.

“While this is a big step forward, there is still a large gap that must be closed before

manufacturing begins to grow once again," said Norbert J. Ore, chair of the survey

committee.

Customer inventories fell back 4.5 percentage points, to 49.5 percent, the first time that

measure has shown inventories contracting since July 2008.

“The Customers' Inventories Index indicates that channels are paring inventories to

acceptable levels after reporting inventories as 'too high' for eight consecutive months.

The prices manufacturers pay for their goods and services continue to decline; however,

copper prices have bottomed and are now starting to rise. This is definitely a good start for

the second quarter,” Ore said.

Contact Thomas L. Gallagher at tgallagher@joc.com .

Supply Chain Management Warehousing/Distribution Logistics + Technology

United States

Source URL: http://www.joc.com/node/411130