National manufacturing activity grew modestly in April, the second month of expansion for a sector that has faced a number of headwinds during the last few quarters.
The Institute for Supply Management’s PMI for the month registered 50.8, down from 51.8 in March. A reading above 50 indicates growth in the sector.
The report found growth in 11 of 18 manufacturing industries, including wood products; printing and support activities; paper products; plastics and rubber; primary metals; fabricated metal products; chemical products; machinery; computer and electronic products; nonmetallic mineral products; and food, beverage and tobacco.
Petroleum and coal products; transportation equipment; miscellaneous manufacturing and furniture and related products showed contraction in April.
Respondents were generally mixed in their views on the sector.
A food and beverage products respondent said the facility was at capacity and had $30 million in capital expenditures that would come online in 2017.
A fabricated metal products respondent said the “general economy is plugging along with no big changes. Kind of lackluster.”
A machinery respondent said the auto industry continues to be strong while a transportation equipment respondent said “Sales are firming at the reduced levels we’ve seen this year. We think we have hit a bottom.”
The report found new orders, production and backlog continued to grow, but at a slower pace than March. Employment improved but was still contracting, continuing a five month trend.
The Marquette-ISM released last week found similar results for the Milwaukee area with growth slowing from April to March.
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