Posted May 2, 2011
U.S. manufacturing marks 21 months of growth
Economic activity in the manufacturing sector expanded in April for the 21st consecutive month, according to the latest Manufacturing ISM Report On Business.
The PMI registered 60.4 percent, a decrease of 0.8 percentage point when compared to March's reading of 61.2 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
"The New Orders and Production Indexes continue to drive the PMI, as they have both exceeded 60 percent for five consecutive months. Manufacturing employment appears to have developed significant momentum, as the Employment Index readings for the first four months of 2011 are the highest readings in the last 38 years," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
"While the manufacturing sector is definitely performing above most expectations so far in 2011, manufacturers are experiencing significant cost pressures from commodities and other inputs," he added.
