Overall economy up and deliveries down

The overall U.S. economy grew for the month of April and economic activity expanded, according to the Manufacturing Institute for Supply Management Report on Business.

For the 23rd consecutive month, the overall economy expanded as the PMI registered 60.4 percent, a decrease of just under 1 percent from March’s reading. The PMI also indicates expansion in the manufacturing sector for the 21st consecutive month.

The new orders index registered 61.7 percent in April, a decrease of 1.6 percentage points compared to March and the 22nd consecutive month of growth in the index.

The petroleum and coal products industry reported the highest growth in production out of 14 industries during the month of April. The overall production index read 63.8 percent in April. This is a decrease of more than 5 percentage points from March, but still the 23rd consecutive month of growth.

The employment index registered 62.7 percent, less than half a percentage point lower than March and the 19th consecutive month of growth.

The petroleum and coal products industry reported the slowest deliveries out of 10 industries to manufacturers as the supplier deliveries index registered 60.2 percent. A reading above 50 percent indicates slower deliveries, and this is the 23rd consecutive month that the reading has been above 50 percent.

The inventories index registered 53.6 percent, more than 6 percentage points higher than March after two months of decline. The petroleum and coal products industry reported the highest drop in inventories out of six industries.

The customers’ inventories index registered 40.5 percent in April. That was one percentage point higher than in March and the 25th consecutive month respondents believed customers’ inventories are too low.

The prices index registered 85.5 percent, half a percentage point lower than March and the highest reading since July 2008. It is also the 22nd consecutive month the index registered above 50 percent. Of the supply executives who participated, 72 percent reported paying higher prices, 27 percent said they are paying the same and 1 percent reported paying lower prices.

The backlog of orders index registered 61 percent in April, just under 9 percentage points higher than March. Of the 88 percent of respondents who reported a backlog of orders, 34 percent reported greater backlogs, 12 percent smaller backlogs and 54 percent reported no change.

The new export orders index registered 62 percent, 6 percentage points higher than March and the 22nd straight month of growth in the index. The petroleum and coal products industry reported the 4th highest growth out of 13 industries in new export orders.

The imports index registered 55.5 percent, the 20th consecutive month of growth in imports and one percentage points lower than March.

Read more financial news



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...