Growth at American Manufacturers Cools as Challenges Persist
Source: Bloomberg
May 2, 2016 10:00 AM EDT
Updated on May 2, 2016 10:17 AM EDT
Manufacturing expanded at a slower pace than forecast in April as factories continued to grapple with lax global demand and fallout from a weakened U.S. energy industry.
The Institute for Supply Managements index declined by 1 point to 50.8, barely above the 50 level that indicates stagnation, the Tempe, Arizona-based groups report showed Monday. The median forecast in a Bloomberg survey of economists was 51.4.
American factories have been beset by dollar strength and weak commodities prices for more than a year, as well as a recent cooling of household spending. While emerging economies are showing hints of stabilizing and the biggest cutbacks by U.S. oil producers have run their course, high business inventories relative to sales represent an additional hurdle for factories.
Manufacturing continues to muddle through at a very low growth rate, Brett Ryan, U.S. economist at Deutsche Bank Securities Inc. in New York, said before the report. Were dealing with the lagged impact of what previous dollar appreciation has done, and added to that we have a domestic inventory overhang, and thats just going to keep manufacturing kind of on the sidelines.
Read more: http://www.bloomberg.com/news/articles/2016-05-02/growth-at-american-manufacturers-cools-as-challenges-persist