Manufacturing Leading U.S. Economy on Exports, Inventories



Manufacturing expanded faster than forecast in April, driven by gains in exports and inventories that are keeping the industry at the forefront of the U.S. economic expansion, Bloomberg reports.

Bloomberg notes that the Institute for Supply Management’s factory index fell to 60.4 last month from 61.2 in March. Readings greater than 50 signal expansion and the measure has exceeded 60 for four consecutive months, the best performance since 2004. The median forecast of 78 economists surveyed by Bloomberg News called for a drop to 59.5. Estimates ranged from 57.5 to 62.

Demand from emerging economies like China, the need to replenish stockpiles and investment in new equipment may continue to benefit manufacturers, Bloomberg said. Fed policy makers said last week the expansion was “proceeding at a moderate pace,” buoyed by stronger business spending.

Bloomberg quoted senior economist Robert Dye at PNC Financial Services as saying, “The overall manufacturing sector remains healthy.” The industry “is helping to sustain an ongoing economic expansion,” he said.

To read the Bloomberg story:
click here.


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