Growth in U.S. manufacturing activity slowed by more than expected in the month of April, according to a report released by the Institute for Supply Management on Monday.
The ISM said its purchasing managers index dipped to 50.8 in April from 51.8 in March, although a reading above 50 indicates growth in the manufacturing sector. Economists had expected the index to edge down to 51.5.
The bigger than expected decrease by the headline index was partly due to a slowdown in the pace of growth in new orders, as the new orders index fell to 55.8 in April from 58.3 in March.
The production index also dropped to 54.2 in April from 55.3 in March, while the supplier deliveries index slid to 49.1 from 50.2.
On the other hand, the employment index rose to 49.2 in April from 48.1 in March, but the reading below 50 continues to indicate a contraction.
The prices index also surged up to 59.0 in April from 51.5 in March, indicating higher raw materials prices for the second consecutive month.
Wednesday morning, the ISM is scheduled to release a separate report on activity in the service sector in the month of April. The service index is expected to inch up to 54.7 in April from 54.5 in March.
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