Factory sector activity slows by more than expected in April, ISM says

(Sharecast News) - Factory sector activity in the U.S. declined unexpectedly last month, even as price pressures picked up, the results of a closely-followed survey revealed. The Institute for Supply Management's manufacturing sector Purchasing Managers' Index slipped from a reading of 50.3 for February to 49.2 in March.

Consensus had been for a reading of 50.1.

A subindex for production fell back by the most, from 54.6 to 51.3, while that for new orders slipped from 51.4 to 49.1.

Another tracking the prices paid by companies however jumped from 55.8 to 60.9.

For both the headline PMI index as well as the various subindices, the 50 point mark was the threshold that separated an expansion from a contraction.

Readings successively below or above 50 points also denoted greater rates of decline or growth.

A purchasing manager from the Computer & Electronic Products sector cited by ISM said the recovery in China remained "slower" than hoped for, alongside ongoing macroeconomic uncertainty in Europe, the Middle East, and domestically in the U.S..

Managers from the Machinery and Fabricated Metal Products sectors meanwhile spoke of softer or slowing demand.

-- More to follow --