Manufacturing Growth Steady as Input Costs Hit 4-Year Peak

Key Details U.S. manufacturing continued expanding in April with the ISM Manufacturing PMI holding at 52.7, matching the highest level since 2022. However, the price gauge for manufacturing inputs climbed to 84.6, a four-year high and the fourth consecutive monthly increase. Why It Matters Middle East conflict and Strait of Hormuz disruptions have spiked oil, aluminum, and helium costs globally. Higher fuel prices are making freight more expensive, and manufacturers are likely to pass these costs to consumers, potentially fueling inflation concerns. What's Changing Thirteen manufacturing sectors reported growth in April, led by textiles, nonmetallic minerals, and primary metals. New orders improved while production growth slowed. Supplier delivery times hit their highest level since 2022, reflecting supply chain delays. Employment Pressure Factory employment fell to a four-month low, with 60% of companies managing headcount rather than hiring. Of those cutting staff, 34% are using layoffs while 43% rely on attrition and position freezes. Next Steps Government employment data releases May 8. Sustained inflationary pressures could force more price increases across the supply chain, directly impacting your operating costs and freight rates.