{"id":17532,"date":"2020-05-04T11:30:35","date_gmt":"2020-05-04T16:30:35","guid":{"rendered":"https:\/\/www.miq.com\/?p=16333"},"modified":"2020-05-04T11:30:35","modified_gmt":"2020-05-04T16:30:35","slug":"april-2020-manufacturing-ism-report-on-business","status":"publish","type":"post","link":"https:\/\/www.noatumlogistics.com\/us\/april-2020-manufacturing-ism-report-on-business\/","title":{"rendered":"APRIL 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae"},"content":{"rendered":"<p>Source:\u00a0 <a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31178&amp;SSO=1\">Institute for Supply Management \u2013 May 1, 2020<\/a><\/p>\n<p>Economic activity in the\u00a0manufacturing sector contracted in April, and the<strong>\u00a0<\/strong>overall economy contracted after 131 consecutive months of expansion<strong>, <\/strong>say the nation\u2019s supply executives in the latest<strong>\u00a0<\/strong>Manufacturing ISM<strong><sup>\u00ae<\/sup><\/strong><strong>\u00a0<\/strong><em>Report On Business<\/em><em><sup>\u00ae<\/sup><\/em>.<!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16334 size-full\" src=\"https:\/\/www.miq.com\/wp-content\/uploads\/2020\/05\/ISM-April-2020-posted-5.4.20.png\" alt=\"\" width=\"1021\" height=\"697\" \/><\/p>\n<p>The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management<sup>\u00ae<\/sup>\u00a0(ISM<sup>\u00ae<\/sup>) Manufacturing Business Survey Committee: \u201cThe April PMI<sup>\u00ae<\/sup>\u00a0registered 41.5 percent, down 7.6 percentage points from the March reading of 49.1 percent. The New Orders Index registered 27.1 percent, a decrease of 15.1 percentage points from the March reading of 42.2 percent. The Production Index registered 27.5 percent, down 20.2 percentage points compared to the March reading of 47.7 percent. The Backlog of Orders Index registered 37.8 percent, a decrease of 8.1 percentage points compared to the March reading of 45.9 percent. The Employment Index registered 27.5 percent, a decrease of 16.3 percentage points from the March reading of 43.8 percent. The Supplier Deliveries Index registered 76 percent, up 11 percentage points from the March reading of 65 percent, limiting the decrease in the composite PMI<sup>\u00ae<\/sup>.<\/p>\n<p>\u201cThe Inventories Index registered 49.7 percent; 2.8 percentage points higher than the March reading of 46.9 percent. The Prices Index registered 35.3 percent, down 2.1 percentage points compared to the March reading of 37.4 percent. The New Export Orders Index registered 35.3 percent, a decrease of 11.3 percentage points compared to the March reading of 46.6 percent. The Imports Index registered 42.7 percent, a 0.6-percentage point increase from the March reading of 42.1 percent.<\/p>\n<p>\u201cComments from the panel were strongly negative (three negative comments for every one positive comment) regarding the near-term outlook, with sentiment clearly impacted by the coronavirus (COVID-19) pandemic and continuing energy market recession. The PMI<sup>\u00ae<\/sup>\u00a0indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory.\u00a0Demand\u00a0contracted heavily, with the (1) New Orders Index contracting at a very strong level, again pushed by new export order contraction, (2) Customers\u2019 Inventories Index approaching a level that is considered a negative for future production, and (3) Backlog of Orders Index strongly contracting, in spite of a lack of production during the period.\u00a0Consumption\u00a0(measured by the Production and Employment indexes) contributed negatively (a combined 36.5-percentage point decrease) to the PMI<sup>\u00ae<\/sup>\u00a0calculation, with activity dramatically contracting due to plant closures and lack of demand.\u00a0Inputs<strong>\u00a0<\/strong>\u2014 expressed as supplier deliveries, inventories and imports \u2014 strengthened again due to supplier delivery issues that were partially offset by continuing imports sluggishness. The delivery issues were the result of disruptions in domestic and global supply chains, driven primarily by supplier plant shutdowns. Inventory contraction slowed due to throughput issues. Inputs contributed positively (a combined 13.8-percentage point increase) to the PMI<sup>\u00ae<\/sup>\u00a0calculation. (The Supplier Deliveries and Inventories indexes directly factor into the PMI<sup>\u00ae<\/sup>; the Imports Index does not.) Prices continued to contract (and at a faster rate in April), supporting a negative outlook.<\/p>\n<p>\u201cThe coronavirus pandemic and global energy market weakness continue to impact all manufacturing sectors for the second straight month. Among the six big industry sectors, Food, Beverage &amp; Tobacco Products remains the strongest. Transportation Equipment and Fabricated Metal Products are the weakest of the big six sectors,\u201d says Fiore.<\/p>\n<p>Of the 18 manufacturing industries, the two that reported growth in April are: Paper Products; and Food, Beverage &amp; Tobacco Products. The 15 industries reporting contraction in April, in order, are: Printing &amp; Related Support Activities; Furniture &amp; Related Products; Transportation Equipment; Textile Mills; Fabricated Metal Products; Nonmetallic Mineral Products; Machinery; Plastics &amp; Rubber Products; Electrical Equipment, Appliances &amp; Components; Petroleum &amp; Coal Products; Wood Products; Miscellaneous Manufacturing; Computer &amp; Electronic Products; Primary Metals; and Chemical Products.<\/p>\n<p>Click <a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31178&amp;SSO=1\">here<\/a> to access the entire release from the Institute for Supply Management website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0 Institute for Supply Management \u2013 May 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in April, and the\u00a0overall economy contracted after 131 consecutive months of expansion, say the nation\u2019s&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16334,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>APRIL 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA<\/title>\n<meta name=\"description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 May 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in April, and the\u00a0overall economy Manufacturing ISM report on business, economic activity, Timothy R. Fiore, CPSM, C.P.M., Chair of the institute for supply management manufacturing business survey committee, PMI, New Orders Index, Production Index, Backlog of Orders index Employment Index, Supplier Deliveries Index, Inventories index, Prices Index, New Export Orders Index, coronavirus, COVID-19, pandemic, energy market recession, Food, Beverage &amp; Tobacco products, Equipment and Fabricated Metal Products, Paper Products, Printing &amp; Related Support Activities, Furniture, Transportation Equipment, Textile Mills, Fabricated Metal Products, nonmetallic mineral products, machinery, plastics &amp; Rubber, Electrical equimpment, appliance &amp; components, petroleum &amp; coal, wood, computer &amp; electronic, primary metals, chemical products.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.noatumlogistics.com\/us\/april-2020-manufacturing-ism-report-on-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"APRIL 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA\" \/>\n<meta property=\"og:description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 May 1, 2020 Economic activity in the\u00a0manufacturing sector contracted in April, and the\u00a0overall economy Manufacturing ISM report on business, economic activity, Timothy R. 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