Manufacturing Continues Expansion in April

Bloomberg details:

Manufacturing expanded in April at the fastest pace since 2004, propelling a U.S. recovery that’s getting a bigger lift from consumer spending.

The Institute for Supply Management’s factory index rose to 60.4, the highest level since June 2004 and exceeding the median forecast in a Bloomberg News survey of 76 economists. Readings greater than 50 signal expansion and today’s report marks a ninth consecutive month of growth.

ISM repondents report:

• "Finances continue to be tight, and we are decreasing safety stock levels to reduce inventory." (Electrical Equipment, Appliances & Components)
• "Business conditions continue to improve. Actual sales exceeded budget for the third straight month." (Food, Beverage & Tobacco Products)
• "Demand from automotive manufacturers has continued to improve month over month." (Fabricated Metal Products)
• "We are finally seeing a turnaround." (Primary Metals)
• "Upward price pressure still evident." (Chemical Products)

Continued strength, but a surprise decline in inventory levels.

Source: ISM