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| ISM April Manufacturing Results (#1) - May. 1, 2006 |
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Summary
Earlier this morning, the Institute for Supply Management reported a moderate increase during April in its index designed to measure the economy's manufacturing activity. The consensus estimate had been looking for a result of something around unchanged from March. Meanwhile, the index's price component registered its second large increase in a row.
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* The Institute for Supply Management reported earlier today that its index designed to measure the economy's manufacturing activity ("PMI") rose to 57.3 in April, moderately better than March's reading of 55.2.
* The April result was better than a consensus estimate that had been looking for something around 55.0.
* In April of 2005, the PMI stood at 53.8, 3.5 points or 6.1% below the latest result.
* For April of 2006, the prices-paid component rose to 71.5, an increase of 5.0 points or a sizable 7.5% from March's 66.5. This represents a level that is decidedly high by historical standards.
* Over the last two months, the price component was up 9.0 points or 14.4%. Moreover, as of April, it stood 23.0 points or a very substantial 47.4% above its recent low, which was 48.5 and was set last July.
(NOTE: Overall index and sub-index readings above 50.0 indicate expansion; readings below 50.0 indicate contraction.)
* On Wednesday (5/3), ISM will release April results for its service-sector index. After these numbers are out, I will publish a detailed analysis of April results for both ISM indexes.
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