You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

US manufacturing grows in April at slower pace


By CHRISTOPHER S. RUGABER

Associated Press

U.S. factory activity expanded at a slower pace in April, held back by weaker hiring and less company stockpiling. The report is the latest sign that economic growth may be slowing this spring.

The Institute for Supply Management said Wednesday that its index of manufacturing activity slipped to 50.7 last month. That’s down from 51.3 in March and the slowest pace this year. A reading above 50 indicates expansion.

A measure of hiring fell sharply to 50.2, the lowest level since November. That suggests factories cut jobs again in April. And manufacturers cut back on stockpiling for the second straight month.

The ISM’s employment gauge hasn’t been a reliable indicator in recent months: It reached a nine-month high in March, conflicting with government data that reported factories shed 3,000 jobs.

Despite the decline in the pace of growth, economists noted that the survey still shows that manufacturing expanded for the fifth straight month. And there were some positive signs in the report.

A measure of production and new orders rose. More new orders indicate companies may have to rebuild their stockpiles in the coming months. Order backlogs grew at a faster pace. Higher orders points to more factory output in the coming months.

“This is not a slump, just more slow growth,” John Silvia, chief economist at Wells Fargo Securities, said.

Still, slower growth in manufacturing suggests some companies may be worried about across-the-board government spending cuts that began on March 1. The survey noted that one company tied to the defense industry mentioned that cuts had weakened its business in April.

The decline follows a report on last week that said businesses slowed their investment in facilities and equipment in the first quarter.

A recession in the 17 European Union countries that use the euro and weaker global growth threaten demand for U.S. exports. A measure of export orders in the ISM survey grew at a slower pace in April.

Factories may also see slower sales this spring because consumers are starting to feel the impact of higher Social Security taxes. Americans increased their spending from January through March at the fastest pace in more than two years. But spending on goods fell in March, a sign that the tax increase may be catching up with consumers.


Reader Comments ...


Next Up in Business

Spring cleaning your computer

As you’re doing spring cleaning around the home, don’t forget about your computer! It needs taken care of, too. Here are a few things you should consider doing to keep your computer in tip-top shape: Run a malware scanner to remove junk: Along with having an anti-virus installed, consider a secondary anti-malware program. They can catch...
Potholes costly for state, motorists
Potholes costly for state, motorists

Earlier this month, Anna Gros of Fairborn was driving home when she turned onto Interstate 675 and hit a large piece of concrete sticking out of a pothole. The large piece of debris blew out a back tire on the car, causing her to lose control and swerve into another lane on the highway. “I was able to control my car. I was blessed,” she...
Local bike trails attracting worldwide attention
Local bike trails attracting worldwide attention

The 2017 International Trails Symposium is coming to Dayton May 7 to 10, investing what organizers expect will be $1 million into the region and showcasing what a Five Rivers MetroParks director calls “the outdoor adventure capital of the Midwest.” The American Trails bi-annual symposium was attracted to Dayton by what Janet Bly, Miami...
Fuyao to raise workers’ pay

Fuyao Glass America’s manufacturing plant is giving all hourly associates a $2-an-hour raise, the company said Thursday. The success at the company’s Moraine plant is becoming more apparent as just two weeks ago Fuyao’s president said he expects the manufacturer to break even this year. On Thursday, the company’s billionaire...
RETAIL ROUND-UP: 3 stories about Cabela’s, RadioShack, Starbucks
RETAIL ROUND-UP: 3 stories about Cabela’s, RadioShack, Starbucks

If you missed out on some of your retail and business news this week, here’s what you need to catch up on before the weekend. Early on in the week, another teen clothing retailer announced it was closing 400 stores nationwide — including some locations in Ohio. Clothing store rue21 announced it is planning on closing hundreds of stores...
More Stories