Manufacturing growth slows in April: ISM

NEW YORK Wed May 1, 2013 10:08am EDT

Associate are seen inspecting a 2013 Accord during a tour of the Honda automobile plant in Marysville, Ohio October 11, 2012. REUTERS/Paul Vernon

Associate are seen inspecting a 2013 Accord during a tour of the Honda automobile plant in Marysville, Ohio October 11, 2012.

Credit: Reuters/Paul Vernon

NEW YORK (Reuters) - The pace of manufacturing growth slowed in April as the sector expanded only modestly, an industry report showed on Wednesday, adding to signs the economy cooled as the second quarter got underway.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.7 from 51.3 in March, coming in below expectations for 50.9.

A reading above 50 indicates expansion.

In a sign of potential resiliency, the forward-looking new orders component edged up to 52.3 from 51.4, while production improved to 53.5 from 52.2.

But employment fell to 50.2 from 54.2, boding poorly for the Labor Department's national unemployment report due on Friday.

Economic growth re-accelerated in the first quarter of the year, but recent data has suggested it slowed again in the spring months, a pattern seen in recent years that has become known as a "spring swoon".

(Reporting by Leah Schnurr; Editing by Chizu Nomiyama)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
dareconomics wrote:
US Manufacturing is approaching stall speed, but the recovery meme will die hard. If you are a wealthy American, your investment portfolio, home and any collectibles you own have appreciated nicely in value due to central bank largesse. For the vast majority of Americans, their net worth is determined mostly by their earning power. Stagnant wages indicate that most of the country still finds itself in economic distress.

As we mentioned above, the Cotillion Effect predicts this. Cheap money helps those closest to the flow. Financial firms, corporations and the wealthy are doing nicely, but the worker continues to suffer.

Full post with charts here:

http://dareconomics.wordpress.com/2013/05/01/around-the-globe-05-01-2013/

May 01, 2013 12:42pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video 

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.