May 2, 2022 - Economy & Business

Manufacturing index hits 20-month low as consumption slows

Data: Institute for Supply Management; Chart: Erin Davis/Axios Visuals

The manufacturing sector is still bustling, but it’s beginning to lose momentum.

By the numbers: The Institute for Supply Management (ISM) Manufacturing PMI index — a closely watched gauge of the health of manufacturers — hit a 20-month low in April.

  • At 55.4%, the figure was lower than March’s 57.1% and is the lowest since it was 55.4% in August 2020.

The big picture: ISM's Timothy Fiore said in a statement that consumer demand remains strong but that there are signs of it “softening.”

  • He also pointed to labor shortages as worsening in April, undermining productivity.

Keep in mind: After two years of binge shopping, some consumers are shifting spending back to travel and services.

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