Industry News: PMI Soars
IMS reported that in April the manufacturing index hit the highest rate in 11 months, registering 54.7%, an increase of 3.8 percentage points when compared to March’s reading of 50.9%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
Also in April, IMS reported that the prices component of the index surged to its highest since last July, registering 73%, indicating manufacturers are paying higher prices on average when compared to March. Prices rose for all reported commodities including gasoline, aluminum, diesel fuel, corn and steel.