TEMPE, AZ – Economic activity in the manufacturing sector expanded in April for the 21st consecutive month, says the Institute for supply management. The PMI was down 0.8 percentage points to 60.4%. New orders were 61.7%, down 1.6 percentage points, while production dipped 5.2 points to 63.8%. Inventories were up 6.2 percentage points to 53.6%, and customer inventories were up 1 point to 40.5%. Backlogs reached 61%, up 8.5 points.

“The recent trend of rapid growth in the manufacturing sector continued in April, as the PMI registered above 60% for the fourth consecutive month. The New Orders and Production Indexes continue to drive the PMI, as they have both exceeded 60% for five consecutive months. Manufacturing employment appears to have developed significant momentum, as the Employment Index readings for the first four months of 2011 are the highest readings in the last 38 years. Inventory growth also took place in April after two months of destocking; however, the inventory restocking would appear to be necessitated by the strong performance in new orders. While the manufacturing sector is definitely performing above most expectations so far in 2011, manufacturers are experiencing significant cost pressures from commodities and other inputs,” said Norbert J. Ore, spokesperson for ISM.

The overall economy grew for the 23rd consecutive month, says the firm.

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