industrial activity manufacturing in USA It contracted more than expected in April and stood at 49.2% compared to 50.3% in March, according to data published by the ISM professional federation. The institution specifies that any measurement below 50% represents a drop in the sector.
In this way, April marked a new decline for manufacturing activity after it registered an expansion in March after 16 consecutive months of decline. However, the figure for the fourth month of the year is the worst expected by analysts, who expected it to be 50%, according to the consensus of Briefing.com.
“Demand suffers a slight drop, and this is evident in a decrease in the number of orders, although the companies consulted are optimistic“, detailed Thimothy Fiore, responsible for this survey of ISM.
For his part, the HFE Chief Economist Rubeela Farooqi, in an analysis note highlighted that at a global level, industrial production has remained weak in recent quarters, however, it had slight growth in February and March. Furthermore, he indicates that there are signs of anticipated future action by the Federal Reserve (FED) in a rate cut.
It is worth mentioning that the manufacturing industry has been suffering for two years from the rate increases of the FED in their attempt to lower inflation. The increase in rates makes credit more expensive, which discourages consumption and investment, thus lowering pressures on prices.
Employment recovers
On the other hand, the employment component of the Manufacturing ISM It rose to 48.6 points in April, its best figure in seven months. While the price paid index reached 60.9 points, being its highest level not seen since June 2022.
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Source: Gestion
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