The Institute for Supply Management (ISM) announced that the manufacturing index slowed for the second consecutive month in April. It fell to 55.4 from 57.1 in March. This is contrary to analysts’ expectations, who had expected an increase to 57.6 in April.
The index remains above 50, indicating an expansion in the manufacturing sector. However, the bottleneck on the supply side appears to have eased.
The manufacturing sector accounts for about 12% of the US economy.
In addition, the US Department of Commerce said that Construction spending rose only 0.1% in March after a 0.5% gain in February.
On a year-on-year basis, construction spending increased by 11.7% in March.
The number of expenditures has not increased significantly, although the private sector has increased its spending, but government spending continues to decline.