Manufacturing Indices on the Rise
The Institute for Supply Management’s manufacturing index rose earlier this month to 60.4, its highest level since June 2004. This marked the ninth consecutive monthly rise for this index. In addition the index’s new orders metric, a measure of future demand jumped considerably from 61.5 in March to 65.7 in April. Three other measurements also rose in April:
| April 2010 | March 2010 | |
| Production component | 66.9 | 61.6 |
| Employment component | 58.5 | 55.1 |
| Prices-Paid component | 78.0 | 75.0 |
Readings above 50 indicate expansion and readings below 50 indicate contraction.
The consensus is that the expansion in manufacturing is becoming more broad based – a very healthy sign for the economy.
We would like to hear from you, is this indicative of any increased business activity in your area? Please use the following link to share your comments.