Signs Of Stress Continue In ISM Manufacturing Sample

Clear signs of stress are the continuing signals from ISM's manufacturing sample. But it's in the details where this is most apparent and less the composite index, at 57.3 in April which though very strong is still comparatively soft for this reading. Delivery times continue to lengthen, up 1/2 point to an unusual 61.1, and input costs continue to climb, up 1.2 points to 79.3. These are rare readings for this venerable survey.

Orders keep pouring in, at 61.2 with backlogs climbing more than 3 points to a very heavy 62.0. Metal tariffs, imposed in March, are disrupting business for at least some in the sample who are warning that business planning is being scrambled and that manpower is being dedicated to dealing with related issues and being shifted away from production. The nation's factory sector appears to be gaining momentum in what, however, may be an uneven environment.