The manufacturing sector expanded in April for the ninth consecutive month, and the overall economy grew for the 12th consecutive month, said the nation's supply executives in the latest Manufacturing ISM Report On Business.

The rate of growth stepped up to its fastest pace since June 2004 as the PMI index registered 60.4 percent.

The PMI increased 0.8 percentage points from March to April as new orders, production and employment all grew. Supplier deliveries were slower in April, and inventories contracted.

A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding. A PMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy.

"The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (58.7 percent) corresponds to a 5.6 percent increase in real gross domestic product. In addition, if the PMI for April is annualized, it corresponds to a 6.2 percent increase in real GDP annually,” said Norbert J. ore, chair of the ISM survey committee.

 “Manufacturers continue to see extraordinary strength in new orders, as the New orders Index has averaged 61.6 percent for the past 10 months. The signs for employment in the sector continue to improve as the Employment Index registered its fifth consecutive month of growth. Overall, the recovery in manufacturing continues quite strong, and the signs are positive for continued growth,” ore said.

Source: JOC