The index has remained above the 50-mark separating expansion from contraction for almost five years. Still, April’s reading marked only a modest recovery from March’s 45-month low.
Production and new orders – a key gauge of demand – each rose at the second-slowest pace since mid-2022 as firms cited competition, the U.S.-Israel war with Iran and lower order approval.
Cost burdens climbed to their highest since August 2022 as the war drove up prices for raw materials – especially fuel. Manufacturers lifted selling prices at the fastest pace in six months.
Foreign demand provided a bright spot with export orders expanding at the fastest pace in seven months.
Despite subdued overall sales, companies hired additional workers at the strongest pace in 10 months with firms citing expansion plans.
Manufacturers also remained optimistic towards growth prospects and business sentiment reached its second-highest level since November 2024.