US manufacturing rises again for fourth consecutive month

A KEY manufacturing index climbed up 3.8 percentage points in April to its highest level in eight months.

The Institute of Supply Management's index of manufacturing reached 40.1 per cent, marking the fourth consecutive month the PMI index improved from month to month and it was the first time the index passed the 40 per cent mark since last September, reports the Journal of Commerce Online.

The ISM's index of new orders grew at a faster rate, jumping six percentage points, to 47.2 per cent, the highest level 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, Norbert Ore, Chair of the survey committee was quoted as saying.

Furthermore, customer inventories fell back 4.5 percentage points, to 49.5 per cent, the first time that measure has shown inventories contracting since July 2008, the report said.

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, Mr Ore added.

Source: Transportweekly