Tuesday, May 6, 2025
In the most recent Manufacturing ISM Report On Business, the country’s supply executives report that economic activity in the manufacturing sector shrank for April, after expanding for two months and then contracting for 26 consecutive months. Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, released the findings:
“The Manufacturing PMI registered 48.7 percent in April, 0.3 percentage point lower compared to the 49 percent recorded in March. The overall economy continued in expansion for the 60th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3 percent, over a period, generally indicates an expansion of the overall economy.)
Fiore goes on, “In April, U.S. manufacturing activity slipped marginally further into contraction after expanding only marginally in February. Demand and output weakened while input strengthened further, conditions that are not considered positive for economic growth. Indications that demand weakened include the (1) New Orders Index continuing in contraction territory, (2) New Export Orders Index dropping sharply further into contraction, (3) Backlog of Orders Index contracting at a faster rate, and (4) Customers’ Inventories Index remaining in ‘too low’ territory.”
“Demand and production retreated, and destaffing continued, as panelists’ companies responded to an unknown economic environment. Price growth accelerated slightly due to tariffs, causing new order placement backlogs, supplier delivery slowdowns, and manufacturing inventory growth. Forty-one percent of manufacturing gross domestic product (GDP) contracted in April, down from 46 percent in March. The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 18 percent in April, an 11-percentage point increase compared to the 7 percent reported in March. Of the six largest manufacturing industries, four (Petroleum & Coal Products, Computer & Electronic Products, Machinery, and Chemical Products) expanded in April, one more as compared to March,” elaborates Fiore.
The manufacturing sectors that reported growth in April are as follows: Primary Metals; Petroleum & Coal Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Textile Mills; Computer & Electronic Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Machinery; Chemical Products; and Apparel, Leather & Allied Products. Paper Products, Transportation Equipment, Food, Beverage & Tobacco Products, Wood Products, Furniture & Related Products, and Fabricated Metal Products are the six industries that reported contraction in April.
A decrease was noted in the following areas for both wood products and furniture and related items:
Wood products reported rising prices for: Payment for raw materials
Furniture and associated goods had a decline in: Employment growth
Read more news on: manufacturing, inventory, furniture, wood products, machinery
Get such updates through the European industry website: woodandpanel.com
Tags: #1 wood news, #1 woodworking magazine, best wood magazine, best wood news, furniture products, inventory management, machinery, manufacturing industry news, manufacturing inventory, paper products, raw materials, supply management, US market update, wood, wood and panel, wood products, woodworking, woodworking and manufacturing, woodworking industry
