PMI Stable in April but Manufacturers Freeze Employment

Manufacturing expanded in April as the Institute for Supply Management’s (ISM) PMI registered 51.5%, the same reading as in March, indicating growth in manufacturing for the 28th consecutive month. The ISM employment index fell to 48.3% from 50% in March, only the third time that number has been under 50% since 2010.

"The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (52.4%) corresponds to a 2.9% increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for April (51.5%) is annualized, it corresponds to a 2.6% increase in real GDP annually," says ISM’s Bradley J. Holcomb.