The U.S. manufacturing sector shrank for the second straight month in April, driven by weakening demand and rising price pressures linked to tariffs, according to the latest data from the Institute for Supply Management (ISM).
The ISM Manufacturing Purchasing Managers’ Index (PMI) fell from 49% in March to 48.7%, its third consecutive monthly decline. While surpassing the economist consensus of 48%, the outcome remains below the neutral 50% threshold, indicating another month of contraction.
“Demand and output weakened while input strengthened further, conditions that are not considered positive for economic growth,” Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee, stated.
He added that destaffing continued as firms grappled with uncertainty and rising costs.
Fiore cited growing backlogs and supplier delivery delays, noting that “prices growth accelerated slightly due to tariffs,” which may have pushed firms to frontload purchases and accumulate inventories.
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