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U.S. Manufacturing In April: Growth In Key Industries Fails To Offset Sector Strain
(MENAFN- The Rio Times) April 2025 brought another month of contraction for U.S. manufacturing, according to the Institute for Supply Management's latest report released May 1.
The Manufacturing PMI fell to 48.7, down from 49.0 in March, confirming a second consecutive month of decline after a brief two-month rebound. Any reading below 50 signals contraction, and this downturn comes as tariffs and supply chain pressures persist.
The report shows a sharply divided sector. Four of the six largest manufacturing industries-petroleum and coal products, computers and electronics, machinery, and chemicals-managed to expand in April.
These industries, often more capital-intensive and globally integrated, adapted to higher costs and shifting supply chains. Their resilience stands out in a challenging environment, as they maintained or grew output despite tariffs and input price pressures.
Yet, other major industries could not keep pace. Transportation equipment, food and beverage products, and fabricated metals continued to shrink.
These sectors rely heavily on complex international supply networks and struggled to absorb the impact of new tariffs, particularly those imposed on key imports from major trading partners.
April 2025 Manufacturing Report Reveals Deepening Strain
The inability to find affordable alternatives for specialized components and raw materials left these industries exposed to higher costs and slower deliveries. The ISM's Production Index dropped to 44.0 in April, a sharp decline from 48.3 in March, signaling a broader cutback in output.
The New Orders Index, while up slightly to 47.2, remained in contraction territory for the third month in a row. Employment in manufacturing also contracted, with the index rising to 46.5 but still below the growth threshold.
Input prices continued to climb, with the Prices Paid Index reaching 69.8, its highest level since mid-2022. Supply chain disruptions led to slower supplier deliveries and growing inventories, as companies rushed to secure materials ahead of further tariff impacts.
This split within the manufacturing sector highlights the uneven impact of trade policy and global supply chain shifts. While some industries leveraged scale and flexibility to weather the storm, others faced mounting pressure and persistent decline.
The data from April 2025 underscores a manufacturing landscape marked by sharp contrasts and continued uncertainty. Growth in a few strong industries has failed to offset widespread strain elsewhere.
The Manufacturing PMI fell to 48.7, down from 49.0 in March, confirming a second consecutive month of decline after a brief two-month rebound. Any reading below 50 signals contraction, and this downturn comes as tariffs and supply chain pressures persist.
The report shows a sharply divided sector. Four of the six largest manufacturing industries-petroleum and coal products, computers and electronics, machinery, and chemicals-managed to expand in April.
These industries, often more capital-intensive and globally integrated, adapted to higher costs and shifting supply chains. Their resilience stands out in a challenging environment, as they maintained or grew output despite tariffs and input price pressures.
Yet, other major industries could not keep pace. Transportation equipment, food and beverage products, and fabricated metals continued to shrink.
These sectors rely heavily on complex international supply networks and struggled to absorb the impact of new tariffs, particularly those imposed on key imports from major trading partners.
April 2025 Manufacturing Report Reveals Deepening Strain
The inability to find affordable alternatives for specialized components and raw materials left these industries exposed to higher costs and slower deliveries. The ISM's Production Index dropped to 44.0 in April, a sharp decline from 48.3 in March, signaling a broader cutback in output.
The New Orders Index, while up slightly to 47.2, remained in contraction territory for the third month in a row. Employment in manufacturing also contracted, with the index rising to 46.5 but still below the growth threshold.
Input prices continued to climb, with the Prices Paid Index reaching 69.8, its highest level since mid-2022. Supply chain disruptions led to slower supplier deliveries and growing inventories, as companies rushed to secure materials ahead of further tariff impacts.
This split within the manufacturing sector highlights the uneven impact of trade policy and global supply chain shifts. While some industries leveraged scale and flexibility to weather the storm, others faced mounting pressure and persistent decline.
The data from April 2025 underscores a manufacturing landscape marked by sharp contrasts and continued uncertainty. Growth in a few strong industries has failed to offset widespread strain elsewhere.
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