Manufacturing Slows Its Pace Of Expansion --- Purchasing Managers Index Shows Reading Slipped In April to 51.3% Level
WASHINGTON -- Manufacturing continued to expand in April, but at a slower pace than the strong growth posted in February and March, a survey of purchasing executives indicated.</br></br>The National Association of Purchasing Management said its closely watched index, one of the first peeks at how U.S. industry did each month, slipped to 51.3% in April. A reading above 50% indicates that the manufacturing sector is generally expanding; a reading below 50% signals contraction.</br></br>While the growth is positive news for the manufacturing sector, which seemed to be leading an economic recovery last summer before petering to stagnation, it is much slower than the growth posted in February and March. After a dismal 47.4% showing in both January and December, the index posted a 52.4% reading in February and jumped to 54.1% in March.</br></br>But the association's survey chairman, Robert Bretz, said the survey's findings are still encouraging even if the index number was lower. "The growth in new orders continues at a relatively high rate and that means more production," said Mr. Bretz, who is also director of corporate purchasing at Pitney Bowes Inc.</br></br>Production and new orders for exports and imports also grew in April, although at slower rates than in March. The 53% reading in import orders is the highest since the index was started in 1989. Mr. Bretz said the expansion in import orders, the second in a row, was the "prize" of the report. "It means the economy here is expanding and it is indicative of the strength of the U.S. dollar," he said.