A report from
the Institute for Supply Management (ISM) showed on Wednesday the U.S.
manufacturing sector’s activity returned to contraction in April after a
one-month growth.
The ISM's index
of manufacturing activity - the manufacturing PMI - checked in at 49.2 per cent
in April, down 1.1 percentage points from an unrevised March reading of 50.3 per cent.
Economists had expected
the indicator to slip to 50.0 per cent.
According to
the report, the New Orders Index dropped 2.3 percentage points to 49.1 per cent
last month, returning into contraction territory after one month of expansion. Meanwhile,
the Production Index fell 3.3 percentage points to 51.3 per cent but remained
in growth territory. The Employment Index increased
1.2 percentage points to 48.6 per cent, evincing employment reduced for the seventh
month in a row, albeit at a slower rate than in March. The Inventories Index held steady at 48.2 per cent, suggesting manufacturing inventories contracted
at the same pace as in the previous month. On the price front, the Prices Index increased 5.1
percentage points to 60.9 per cent, indicating raw materials prices in April rose
for the fourth straight month after eight consecutive months of decreases.