PMI 54.8% 2009

201220112010

42.6% = Overall EconomyBreakeven Line

New Orders, Production and Employment Growing; Supplier Deliveries Faster; Inventories ContractingPMI at 54.8%

PMI

Manufacturing at a glance

indexapr

indexMar

index % point change

directionrate of change

trend* (Months)

PMI 54.8 53.4 +1.4 Growing Faster 33

New Orders 58.2 54.5 +3.7 Growing Faster 36

Production 61.0 58.3 +2.7 Growing Faster 35

Employment 57.3 56.1 +1.2 Growing Faster 31

Supplier Deliveries 49.2 48.0 +1.2 Faster Slower 3

Inventories 48.5 50.0 -1.5 Contracting From Unchanged 1

Customers’ Inventories 45.5 44.5 +1.0 Too Low Faster 5

Prices 61.0 61.0 0.0 Increasing Same 4

Backlog of Orders 49.5 52.5 -3.0 Contracting From Growing 1

Exports 59.0 54.0 +5.0 Growing Faster 6

Imports 53.5 53.5 0.0 Growing Same 5

oVerall econoMY growing faster 35

Manufacturing sector growing faster 33*Number of months moving in current direction. Manufacturing ISM Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

A PMI in excess of 42.6 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 35th consecutive

month in the overall economy, as well as expansion in the manufacturing sector for the 33rd consecutive month. The past relationship between the PMI and the overall economy indicates that the average PMI for January through April (53.7 percent) corresponds to a 3.8 percent increase in real gross domestic product (GDP). In addition, if the PMI for April (54.8 percent) is annualized, it corresponds to a 4.1 percent increase in real GDP annually.

coMModities reportedcommodities up in price: Alloys; Aluminum Products (3); Fabricated Metal Parts; Ferro Alloys; #2 Fuel Oil; Gasoline (2); HDPE (2); Lumber (2); Machined Metal Parts; Motors; Oil (2); Oil Related Products; Plastic Components (2); Plastic Resins (3); Polypropylene (3); Propylene; Rubber Products (2); Steel — Hot Rolled; Steel Based Products; Soybean Oil; Titanium Dioxide; and Transportation Costs.

commodities down in price: Natural Gas (9); and Steel (2).

commodities in short supply: No commodities are reported in short supply.

‡Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies).

note: The number of consecutive months the

commodity is listed is indicated after each item.

Economic activity in the manufac-turing sector expanded in April for the 33rd consecutive month, and

the overall economy grew for the 35th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.

The PMI registered 54.8 percent, an increase of 1.4 percentage points from March’s reading of 53.4 percent, indicating expansion in the manufacturing sector for the 33rd consecutive month. Sixteen of the 18 industries reflected overall growth in April, and the New Orders, Production and Employment Indexes all increased, indicating growth at faster rates than in March. The Prices Index for raw materials remained at 61 percent in April, the same rate as reported in March. Comments from the panel generally indicate stable to strong demand, with some concerns cited over increasing oil prices and European stability.

Of the 18 manufacturing industries, 16 are reporting growth in April, in the fol-lowing order: Furniture & Related Prod-ucts; Printing & Related Support Activities; Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing‡; Primary Metals; Paper Products; Transportation Equipment; Electrical Equipment, Appli-ances & Components; Plastics & Rubber Products; Apparel, Leather & Allied Prod-ucts; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Prod-ucts; Computer & Electronic Products; and Petroleum & Coal Products. isM

Analysis by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.

ISM Report On Business®

April 2012

Customer Inventories (Manufacturing) 45.5%201220112010

Backlog of Orders (Manufacturing) 49.5%201220112010

New Export Orders (Manufacturing) 59%201220112010

Imports (Manufacturing) 53.5%201220112010

Prices (Manufacturing) 61%201220112010

49.4% = B.L.S. Prducer Prices Index forIntermediate Materials Breakeven Line

Production (Manufacturing) 61%201220112010

51.2% = Census Bureau Mfg.Breakeven Line

Employment (Manufacturing)

201220112010

57.3%

50.5% = B.L.S. Mfg.Employment

Breakeven Line

Supplier Deliveries (Manufacturing)

201220112010

49.2%

Inventories (Manufacturing) 48.5%201220112010

42.8% = B.E.A. Overall Mfg.Inventories Breakeven Line

New Orders (Manufacturing) 58.2%201220112010

52.3% = Census Bureau Mfg.Breakeven Line

ISM Report On Business®

April 2012 — MANUFACTUriNG

‡Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies).

PRODUCTIONISM’s Production Index registered

61 percent in April. Fifteen indus-

tries reported growth in production

in April: Nonmetallic Mineral Prod-

ucts; Furniture & Related Prod-

ucts; Apparel, Leather & Allied Products; Printing & Related Support Activities;

Paper Products; Transportation Equipment; Machinery; Miscellaneous Manu-

facturing‡; Chemical Products; Food, Beverage & Tobacco Products; Primary

Metals; Electrical Equipment, Appliances & Components; Petroleum & Coal

Products; Fabricated Metal Products; and Computer & Electronic Products.

New ORDeRsISM’s New Orders Index registered

58.2 percent in April. Fifteen

industries reported growth in new

orders in April: Furniture & Related

Products; Printing & Related

Support Activities; Paper Products; Machinery; Primary Metals; Transporta-

tion Equipment; Food, Beverage & Tobacco Products; Apparel, Leather & Allied

Products; Chemical Products; Plastics & Rubber Products; Miscellaneous Man-

ufacturing ‡; Electrical Equipment, Appliances & Components; Fabricated Metal

Products; Computer & Electronic Products; and Petroleum & Coal Products.

eMPLOYMeNTISM’s Employment Index regis-

tered 57.3 percent in April. Thir-

teen industries reported growth

in employment in April in the fol-

lowing order: Nonmetallic Min-

eral Products; Primary Metals; Plastics & Rubber Products; Machinery;

Furniture & Related Products; Miscellaneous Manufacturing ‡; Transporta-

tion Equipment; Apparel, Leather & Allied Products; Paper Products; Fab-

ricated Metal Products; Electrical Equipment, Appliances & Components;

Food, Beverage & Tobacco Products; and Chemical Products.

sUPPLIeR DeLIVeRIesISM’s Supplier Deliveries Index

registered 49.2 percent in April.

This is the third consecutive

month supplier deliveries have

been faster than the previous month, following 31 consecutive months in

which supplier deliveries slowed. A reading above 50 percent indicates

slower deliveries. The four industries reporting slower supplier deliveries

in April are: Machinery; Electrical Equipment, Appliances & Components;

Furniture & Related Products; and Transportation Equipment.

INVeNTORIesThe Inventories Index regis-

tered 48.5 percent in April. This

month’s reading, at 48.5 percent,

indicates that respondents are

reporting inventories are con-

tracting, which has been the case in six out of the last seven months. Eight

industries reported higher inventories in April: Printing & Related Support

Activities; Miscellaneous Manufacturing ‡; Primary Metals; Machinery;

Food, Beverage & Tobacco Products; Computer & Electronic Products;

Paper Products; and Petroleum & Coal Products.

CUsTOMeRs’ INVeNTORIesThe ISM Customers’ Inventories

Index registered 45.5 percent

in April. Customers’ inventories

have registered at or below 50

percent for 37 consecutive months. A reading below 50 percent indicates cus-

tomers’ inventories are considered too low. The four manufacturing industries

reporting customers’ inventories as being too high during April are: Electrical

Equipment, Appliances & Components; Fabricated Metal Products; Miscel-

laneous Manufacturing ‡; and Food, Beverage & Tobacco Products.

PRICesThe ISM Prices Index registered 61

percent in April. Thirteen indus-

tries reported paying increased

prices during the month of April in

the following order: Furniture &

Related Products; Plastics & Rubber Products; Nonmetallic Mineral Products;

Paper Products; Chemical Products; Apparel, Leather & Allied Products;

Machinery; Miscellaneous Manufacturing ‡; Computer & Electronic Products;

Petroleum & Coal Products; Food, Beverage & Tobacco Products; Fabricated

Metal Products; and Electrical Equipment, Appliances & Components.

BaCkLOg Of ORDeRsISM’s Backlog of Orders Index

registered 49.5 percent in April,

which is 3 percentage points

lower than the 52.5 percent

reported in March. The five industries reporting increased order backlogs

in April are: Furniture & Related Products; Plastics & Rubber Products;

Paper Products; Primary Metals; and Transportation Equipment.

New exPORT ORDeRsISM’s New Export Orders Index

registered 59 percent in April,

which is 5 percentage points higher

than the 54 percent reported in

March. Twelve industries reported growth in new export orders in April: Textile

Mills; Furniture & Related Products; Apparel, Leather & Allied Products; Primary

Metals; Chemical Products; Paper Products; Transportation Equipment; Food,

Beverage & Tobacco Products; Machinery; Miscellaneous Manufacturing ‡; Fab-

ricated Metal Products; and Computer & Electronic Products.

IMPORTsISM’s Imports Index registered

53.5 percent in April, the same

rate as reported in March. The

eight industries reporting growth

in imports during the month of

April — listed in order — are: Nonmetallic Mineral Products; Furniture &

Related Products; Transportation Equipment; Paper Products; Machinery;

Food, Beverage & Tobacco Products; Electrical Equipment, Appliances &

Components; and Fabricated Metal Products.

201220112010

NMI (Non-Manufacturing) 53.5%

April 2012

Business Activity Index at 54.6%; New Orders Index at 53.5%; Employment Index at 54.2%NMI at 53.5%

Economic activity in the non-man-ufacturing sector grew in April for the 28th consecutive month, say the

nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business ®.

The NMI registered 53.5 percent in April, 2.5 percentage points lower than the 56 per-cent registered in March. This indicates con-tinued growth this month, but at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index reg-istered 54.6 percent, which is 4.3 percentage points lower than the 58.9 percent reported in March. The New Orders Index decreased by 5.3 percentage points to 53.5 percent, and the Employment Index decreased by 2.5 percentage points to 54.2 percent. The Prices Index decreased 10.3 percentage points to 53.6 percent. Respondents’ comments affirm the slowing rate of growth. In addition, they remain concerned about rising fuel costs and the impact on shipping, transportation and petroleum-based product costs.

The 15 non-manufacturing industries reporting growth in April — listed in order — are: Retail Trade; Information; Construc-tion; Management of Companies & Support Services; Arts, Entertainment & Recreation; Educational Services; Finance & Insurance; Accommodation & Food Services; Whole-sale Trade; Real Estate, Rental & Leasing; Transportation & Warehousing; Other Ser-vices✣; Public Administration; Professional, Scientific & Technical Services; and Health Care & Social Assistance. ISM

Analysis by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee.

NMI

In April, the NMI registered 53.5 percent, indicating continued growth in the non-man-ufacturing sector for the 28th consecutive month. A reading above 50 percent indicates

the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.

COMMODITIES REPORTEDCommodities Up in Price: Air Freight; Airfares (4); Anti-Bacterial Hand Sanitizers; Apparel; Asphalt; Asphalt Construction; Auto Parts; Automobile Tires; Beef; Benefits; Cleaning Products; Construction Services; Diesel Fuel (3); #1 Diesel Fuel (5); #2 Diesel Fuel (6); Delivery Services; Food & Beverage (2); Fuel (4); Fuel Products (2); Fuel Sur-charges (2); Fuel Transportation; Gasoline (4); Hotel Rates; Labor; Office Products and Supplies; Paper Products; Plastic Bags (2); Plastic Can Liners; Plastic Film (3); Plastic Products (3); Rental Cars; Software Maintenance; Steel; Transportation Costs; 3/4-Ton Pickup Trucks (4X4); Trucks; and #10 Window Envelopes.

Commodities Down in Price: Carbon Steel Products; Cheese; Computer Equip-ment/Hardware; Copper Based Products; Electricity; and Natural Gas (3).

Commodities in Short Supply: IV Solutions; and Pharmaceuticals (2).

✣Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning

& Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

Note: The number of consecutive months the

commodity is listed is indicated after each item.

NON-MaNUfaCTURINg aT a glaNCE

INDExaPR

INDEx MaR

INDEx % POINT ChaNgE

DIRECTIONRaTE Of ChaNgE

TREND* (MONThS)

NMI 53.5 56.0 -2.5 Growing Slower 28

Business Activity 54.6 58.9 -4.3 Growing Slower 33

New Orders 53.5 58.8 -5.3 Growing Slower 33

Employment 54.2 56.7 -2.5 Growing Slower 4

Supplier Deliveries 51.5 49.5 +2.0 Slowing From Faster 1

Inventories 54.0 54.0 0.0 Growing Same 3

Prices 53.6 63.9 -10.3 Increasing Slower 33

Backlog of Orders 53.0 49.5 +3.5 Growing From Contracting 1

New Export Orders 58.0 52.5 +5.5 Growing Faster 9

Imports 56.5 56.0 +0.5 Growing Faster 5

Inventory Sentiment 61.0 58.5 +2.5 Too High Faster 179

*Number of months moving in current direction. Non-Manufacturing ISM Report On Business ® data is seasonally adjusted for the Business Activity, New Orders, Prices and Employment Indexes.

sUPPLIeR DeLIVeRIesThe Supplier Deliveries Index

slowed in April after two consec-

utive months of faster deliveries.

The index registered 51.5 percent

in April. This is 2 percentage points higher than the 49.5 registered in

March. The seven industries reporting slower deliveries in April — listed in

order — are: Retail Trade; Other ServicesC; Wholesale Trade; Management

of Companies & Support Services; Educational Services; Information; and

Health Care & Social Assistance.

INVeNTORIesISM’s Non-Manufacturing

Inventories Index grew in April

for the third consecutive month.

The index registered 54 per-

cent, which is the same reading

that was reported in March. The eight industries reporting an increase in

inventories in April — listed in order — are: Mining; Wholesale Trade; Real

Estate, Rental & Leasing; Accommodation & Food Services; Information;

Utilities; Finance & Insurance; and Public Administration.

eMPLOYMeNTISM’s Non-Manufacturing

Employment Index registered

54.2 percent in April. The 12

industries reporting an increase

in employment in April — listed

in order — are: Mining; Retail Trade; Finance & Insurance; Construction;

Management of Companies & Support Services; Information; Accommo-

dation & Food Services; Arts, Entertainment & Recreation; Real Estate,

Rental & Leasing; Wholesale Trade; Professional, Scientific & Technical

Services; and Public Administration.

New ORDeRsISM’s Non-Manufacturing New

Orders Index registered 53.5

percent in April. The 12 industries

reporting growth of new orders

in April — listed in order — are:

Retail Trade; Information; Construction; Accommodation & Food Services;

Educational Services; Management of Companies & Support Services;

Arts, Entertainment & Recreation; Transportation & Warehousing; Real

Estate, Rental & Leasing; Finance & Insurance; Wholesale Trade; and Pro-

fessional, Scientific & Technical Services.

BUsINess aCTIVITYISM’s Non-Manufacturing Business

Activity Index in April registered 54.6

percent. The 14 industries reporting

growth of business activity in April

— listed in order — are: Retail Trade; Construction; Information; Arts, Entertain-

ment & Recreation; Transportation & Warehousing; Management of Companies &

Support Services; Educational Services; Finance & Insurance; Real Estate, Rental

& Leasing; Other ServicesC; Wholesale Trade; Accommodation & Food Services;

Public Administration; and Health Care & Social Assistance.

IMPORTsThe ISM Non-Manufacturing

Imports Index registered 56.5

percent in April, which is 0.5

percentage point higher than the

56 percent reported in March.

The seven industries reporting an increase in the use of imports in April —

listed in order — are: Arts, Entertainment & Recreation; Retail Trade; Infor-

mation; Finance & Insurance; Transportation & Warehousing; Management

of Companies & Support Services; and Construction.

INVeNTORY seNTIMeNTISM’s Non-Manufacturing Inven-

tory Sentiment Index registered

61 percent in April. This indicates

that respondents believe their

inventories are still too high at this time. The seven industries reporting a

feeling that their inventories are too high in April — listed in order — are:

Management of Companies & Support Services; Information; Finance &

Insurance; Wholesale Trade; Mining; Arts, Entertainment & Recreation;

and Accommodation & Food Services.

New exPORT ORDeRsISM’s New Export Orders Index

for April registered 58 percent,

which is 5.5 percentage points

higher than the 52.5 percent

reported in March. The eight industries reporting an increase in new export

orders in April — listed in order — are: Finance & Insurance; Management

of Companies & Support Services; Arts, Entertainment & Recreation; Con-

struction; Retail Trade; Information; Accommodation & Food Services; and

Wholesale Trade.

BaCkLOg Of ORDeRsISM’s Non-Manufacturing Backlog

of Orders Index registered 53

percent in April, 3.5 percentage

points higher than the 49.5 per-

cent reported in March. The nine industries reporting an increase in order

backlogs in April — listed in order — are: Health Care & Social Assistance;

Accommodation & Food Services; Wholesale Trade; Information; Manage-

ment of Companies & Support Services; Transportation & Warehousing;

Public Administration; Construction; and Finance & Insurance.

PRICesISM’s Non-Manufacturing Prices

Index for April registered 53.6 per-

cent. Fourteen industries reported

an increase in prices paid during

the month of April: Accommoda-

tion & Food Services; Educational Services; Agriculture, Forestry, Fishing &

Hunting; Wholesale Trade; Other ServicesC; Retail Trade; Finance & Insur-

ance; Public Administration; Professional, Scientific & Technical Services;

Real Estate, Rental & Leasing; Health Care & Social Assistance; Manage-

ment of Companies & Support Services; Construction; and Utilities.

Prices (Non-Manufacturing) 53.6%201220112010

New Export Orders (Non-Manufacturing) 58% 201220112010

Imports (Non-Manufacturing) 56.5%201220112010

Inventories Sentiment (Non-Manufacturing) 61%201220112010

Backlog of Orders (Non-Manufacturing) 53%201220112010

Business Activities (Non-Manufacturing) 54.6% 201220112010

Employment (Non-Manufacturing) 54.2% 201220112010

Supplier Deliveries (Non-Manufacturing) 51.5% 201220112010

Inventory Change (Non-Manufacturing)

201220112010

54%

New Orders (Non-Manufacturing) 53.5%201220112010

ISM Report On Business®

April 2012 — NON-MANUFACTUriNG

✣Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).